Mutual funds are investment tools used to build long-term wealth. While many types are available, equity-linked funds attract investors seeking higher returns over time. They are relatively easy to manage and offer diversification.
However, the past year has weighed on many mutual funds. Unfavourable geopolitical conditions and global uncertainty have affected market performance, leading to weaker returns from several equity mutual funds. In contrast, safe-haven assets such as gold and silver have gained.
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Amid a slowdown in the global economy and wider uncertainty, some mutual funds have delivered negative returns during this period. This has raised investor concerns. Investors should review their mutual fund portfolios periodically. Such periods also show that mutual fund investments, especially equity ones, are not suited for short-term horizons.
Data show that several equity funds have recorded up to 20% or more SIP losses in the last one year. Investors should check if their fund features on this list:
- Motilal Oswal Midcap Fund, benchmarked against the NIFTY Midcap 150 Total Return Index, has underperformed in the last year. According to Value Research, the fund delivered a negative XIRR of 27.81% on SIPs over the past year. A Rs 10,000 monthly SIP is now worth about Rs 1.02 lakh. XIRR, or extended internal rate of return, is used to calculate annualised returns on investments.
- Invesco India Focused Fund, benchmarked against the BSE 500 Total Return Index, has underperformed in the last year. The fund delivered a negative XIRR of 25.36% on SIP investments over the past year. A monthly SIP of Rs 10,000 would now be worth around Rs 1.03 lakh.
- Nippon India Consumption Fund, benchmarked against the NIFTY India Consumption Total Return Index, has recorded weak short-term performance. The fund delivered a negative XIRR of 22.74% on SIPs over the past year. A Rs 10,000 monthly SIP would now be worth about Rs 1.05 lakh.
- Invesco India Flexi Cap Fund, benchmarked against the BSE 500 Total Return Index, has underperformed in the short term. The fund delivered a negative XIRR of 21.11% on SIPs over the past year. A Rs 10,000 monthly investment is now worth around Rs 1.06 lakh.
- Mirae Asset Great Consumer Fund delivered a negative XIRR of 20.10% on SIPs over the past year. A Rs 10,000 monthly investment would now be worth about Rs 1.07 lakh.
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