5 Worst Performing Mutual Funds in the last 1 Year [-24% to 0%]

Mutual funds generated significant wealth in 2023 and 2024. However, we have seen a correction in recent months. There are more than 750 stock mutual funds, and several have underperformed even after the bull market that ended several months ago. In this article we will talk about The 5 worst-performing mutual funds that produced negative returns over the past year (January 10, 2024 to January 9, 2025).

Also read:

How did we filter out the worst performing mutual funds over the past year?

• We considered all equity mutual funds, including sector funds and thematic mutual funds. However, we excluded ETFs from this list, leaving us with a dataset of over 750 mutual funds.
• We’ve filtered for funds that have delivered the lowest returns over the past year.
• There were five funds that produced negative returns ranging from -24% to 0%. Returns are for direct plans. This means that regular plan returns will be affected even more.
• You may be wondering why mutual funds are producing negative or zero returns when Nifty has produced 8.5% returns in the past year and most active funds have produced double-digit returns. No. Let’s take a closer look at such funds.
• If you are new to investment trusts, please check here. Beginner’s guide to investment trusts.

List of top 5 worst performing mutual funds over the past year

Below is a list of the five worst-performing mutual funds over the past year.

#1 – HSBC Brazil Fund – 1 year return – -24.0%

2nd place – Mahindra Manulife Asia Pacific REIT FoF – 1 year return – -5.6%

#3 – Invesco India Pan-European Equity Fund of Funds – 1 year return – -2.5%

#4 – DSP World Mining Fund – 1 year return – -0.4%

#5 – Kotak International REIT FOF – 1 year return – 0%

You may also like: Best Mid Cap Funds in India 2025

The 5 Worst-Performing Mutual Funds of the Past Year – A Deep Dive into These Funds

Learn more about the funds’ investment objectives, performance, and our views on these funds.

#1 – HSBC Brazil Fund – 1 year return – -24.0%

Investment purpose:

The main investment objective of the scheme is to achieve long-term capital appreciation by primarily investing in units/shares of the HSBC Global Investment Fund (HGIF) Brazil Equity Fund.

Performance details

Absolute return of the fund

• 1 year return: -24.0%
• 3 year return: -7.2%
• 5 year return: -9.9%
• 10 year return: -11.9%
• Revenue since inception: -36.4%

Annualized return of the fund

• 1 year return: -24.0%
• 3 year return: 3.2%
• 5 year return: -9.5%
• 10 year return: -1.2%
• Revenue since inception: -3.7%

Our view:

• This is an international fund, and its underlying funds invest primarily in Brazilian companies.
• The fund has generated an annualized return of -3.7% since its inception.

If you have invested in such funds, please review their performance and consider exiting if they no longer align with your financial goals.

2nd place – Mahindra Manulife Asia Pacific REIT FoF – 1 year return – -5.6%

Investment purpose:

The scheme aims to generate long-term capital by investing primarily in units of the Manulife Global Fund Asia Pacific REIT Fund, an overseas fund that invests primarily in real estate investment trusts (REITs) in the Asia-Pacific region excluding Japan. We aim to improve value.

Performance details

Absolute return of the fund

• 1 year return: -5.6%
• 2 year return: -10.4%
• Revenue since inception: -16.5%

Annualized return of the fund

• 1 year return: -5.6%
• 2 year return: -3.6%
• Revenue since inception: -5.4%

Our view:

• This is an international fund and the underlying fund invests primarily in REIT companies in the Asia-Pacific region excluding Japan.
• The underlying fund’s top holdings are Link REIT, Ascendas REIT, Capitaland Integrated Commercial Trust, and Frasers Logistics and Commercial Trust.
• The fund has generated an annualized return of -5.4% since its inception.
• If you have invested in such funds, review their performance and consider exiting if they no longer align with your financial goals.

#3 – Invesco India Pan-European Equity Fund of Funds – 1 year return – -2.5%

Investment purpose:

Capital growth will be generated primarily by investing in units of the Invescopan European Equity Fund, an overseas equity fund that invests in the stocks of European companies, primarily large companies.

Performance details

Absolute return of the fund

• 1 year return: -2.5%
• 3 year return: 15.2%
• 5 year return: 40.4%
• 10 year return: 86.1%
• Return rate since inception: 69.6%

Annualized return of the fund

• 1 year return: -2.5%
• 3 year return: 4.8%
• 5 year return: 7.0%
• 10 year return: 6.4%
• Return rate since inception: 4.9%

Our view:

• This is an international fund and the underlying fund invests primarily in European companies.
• The fund has generated an annualized return of 4.9% since its inception. Even safe bank FDs have generated returns of over 7% per annum over the past 10 years. Is it necessary to take the risk for such a low return?
• If you have invested in such funds, review their performance and consider exiting if they no longer align with your financial goals.

Also read: 10 best investment trusts for long-term investment in 2025

#4 – DSP World Mining Fund – 1 year return – -0.4%

Investment purpose:

The fund will invest primarily in units of the BlackRock Global Fund (World Mining Fund). The underlying funds invest primarily in large international companies in the mining and metals sectors.

Performance details

Absolute return of the fund

• 1 year return: -0.4%
• 3 year return: 4.8%
• 5 year return: 70.8%
• 10 year return: 127.5%

Annualized return of the fund

• 1 year return: -0.4%
• 3 year return: 1.57%
• 5 year return: 11.2%
• 10 year return: 8.5%

Our view:

• This is an international fund and the underlying funds invest primarily in large international companies in the mining and metals sectors.
• The top 10 holdings of the underlying BlackRock World Mining Fund are Glencore PLC, Rio Tinto PLC, Agnico Eagle, BHP Group, Freeport, Anglo American, Wheaton, Ivanhoe, Teck Resources, and Barrick.・Gold Corporation.
• The fund has returned 3.4% annually since its inception.
• Last year, we learned that according to recent E&Y reports; The mining and metals sector will face a complex operating environment in 2024many challenges await us in the future. The impact was also visible in the fund’s performance over the past year.
• If you have already invested in such mutual funds, you can hold onto them for a longer period of time. Avoid new investments in such funds for now. If you have created a SIP in such a fund, you can suspend it for the time being or convert it to other equity mutual funds.

#5 – Kotak International REIT FOF – 1 year return – 0%

Investment purpose:

The investment objective of the scheme is to provide long-term capital growth and returns by investing in units of the SMAM ASIA REIT Sub Trust Fund and/or other similar overseas REIT funds.

Performance details

Absolute return of the fund

• 1 year return: 0.0%
• 3 year return: -3.82%
• Revenue since inception: -2.2%

Annualized return of the fund

• 1 year return: 0.0%
• 3 year return: -1.2%
• Revenue since inception: -0.5%

Our view:

• This is an international fund and the underlying funds invest primarily in REIT companies in the Asia Pacific region.
• The fund has generated an absolute return of -2.0% since its inception.
• If you have invested in such funds, review their performance and consider exiting if they no longer align with your financial goals.

Suresh KP is an experienced financial professional with over 20 years of experience. He is a NISM Certified Investment Advisor and Research Analyst. To learn more about his expertise and certifications, please visit About Suresh KP.

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