11 Mutual Fund Schemes Lost 10% to 22% Returns in 2025

Investing in mutual funds is considered one of the most efficient ways to build long-term wealth. However, not all mutual fund schemes deliver positive returns all the time. While markets fluctuate, some mutual funds have taken a sharp hit in 2025. In this article, we will review 11 mutual fund schemes that lost between 10% to 22% in 2025 so far. This will help investors understand the risks and assess whether such schemes suit their risk appetite.

While this article focuses on mutual funds that lost in YTD 2025, investors can also check about 8 Mutual Fund Schemes with 3 month returns between 20% to 54%.

What are Mutual Funds?

Mutual funds pool money from various investors and invest in stocks, bonds, or other securities based on their objective. Each mutual fund has a defined strategy – it could be sector-specific, small cap, flexi cap, or multi cap, among others. Professional fund managers handle the investment decisions, making it easier for individual investors to diversify their portfolios.

How We Filtered These Mutual Fund Schemes?

For this analysis, we considered all equity mutual fund schemes across categories.

• We then filtered funds based on their Year-To-Date (YTD) performance from 1-Jan-2025 to 31-May-2025.
• We selected schemes that showed negative returns.
• We could get 11 mutual funds that showed negative returns of 10% to 22% in YTD 2025.

List of 11 Mutual Fund Schemes that Lost 10% to 22% in 2025

 11 Mutual Funds Lost 10% to 22% Returns in 2025-Deep Dive

Let’s take a deeper look at each fund.

#1 – Shriram Multi Sector Rotation Fund

• Category: Sectoral/Thematic
• Objective: Invests across multiple sectors based on cyclical opportunities.
• AUM: ₹ 195 Cr
• YTD 2025: -22%
• Returns: 3M: 5%, No long-term data available
• Benefits:
  • Exposure to high-growth sectors.
  • Potential to outperform during sectoral rallies.
• Risks:
  • High volatility due to sector rotation.
  • Lacks consistent performance in sideways markets.

#2 – Union Active Momentum Fund

• Category: Sectoral/Thematic
• Objective: Focuses on momentum-based investing strategy.
• AUM: ₹ 421 Cr
• YTD 2025: -15%
• Returns: 3M: 14%
• Benefits:
  • Captures short-term market trends.
  • High upside potential in bullish markets.
• Risks:
  • Poor performance during market corrections.
  • Momentum can reverse quickly leading to losses.

#3 – Samco Flexi Cap Fund

• Category: Flexi Cap Fund
• Objective: Invests across large, mid, and small caps.
• AUM: ₹ 443 Cr
• YTD 2025: -14%
• Returns:
  • 3M: 18%
  • 6M: -12%
  • 1Y: -10%
  • 3Y CAGR: 7%
• Benefits:
  • Dynamic allocation based on market opportunities.
  • Balanced exposure across segments.
• Risks:
  • Higher exposure to mid and small caps increases volatility.
  • Requires careful monitoring.

While this fund has generated negative / low returns in the last 1-3 years, there are several Top Performing Flexicap Mutual Funds where investors can review.

#4 – Tata Digital India Fund

• Category: Sectoral/Thematic (IT)
• Objective: Focuses on companies in the digital and IT space.
• AUM: ₹ 11,037 Cr
• YTD 2025: -12%
• Returns:
  • 3M: 4%
  • 6M: -11%
  • 1Y: 17%
  • 3Y CAGR: 15%
  • 5Y CAGR: 30%
• Benefits:
  • Exposure to a growing and innovative sector.
  • Long-term outperformance potential.
• Risks:
  • High dependence on global tech trends.
  • Sector concentration risk.

#5 – LIC MF Small Cap Fund

• Category: Small Cap Fund
• Objective: Invests in small-cap companies with growth potential.
• AUM: ₹ 518 Cr
• YTD 2025: -12%
• Returns:
  • 3M: 17%
  • 6M: -11%
  • 1Y: 8%
  • 3Y: 23%
  • 5Y: 35%
• Benefits:
  • High return potential over long term.
  • Opportunity to invest in emerging businesses.
• Risks:
  • High volatility.
  • Illiquidity in small cap stocks during downturns.

Investors can review some of the Top Smallcap Mutual Funds to invest in 2025.

#6 – Samco Special Opportunities Fund

• Category: Sectoral/Thematic
• Objective: Invests in special situations and emerging opportunities.
• AUM: ₹ 150 Cr
• YTD 2025: -11%
• Returns:
• Benefits:
  • Targets unique high-growth stories.
  • Potential to benefit from turnaround themes.
• Risks:
  • Unpredictable performance.
  • Limited diversification.

#7 – Invesco India Technology Fund

• Category: Sectoral/Thematic
• Objective: Invests in technology-driven companies.
• AUM: ₹ 307 Cr
• YTD 2025: -11%
• Returns:
• Benefits:
  • Gains from innovation and tech advancement.
  • Good for long-term growth investors.
• Risks:
  • Sector-specific downturns affect returns.
  • Highly cyclical.

#8 – Motilal Oswal Midcap Fund

• Category: Mid Cap Fund
• Objective: Invests in mid-sized companies with strong growth.
• AUM: ₹ 27,780 Cr
• YTD 2025: -11%
• Returns:
  • 3M: 13%
  • 6M: -8%
  • 1Y: 21%
  • 3Y CAGR: 33%
  • 5Y CAGR: 40%
• Benefits:
  • Strong long-term track record.
  • Balanced risk-reward compared to small caps.
• Risks:
  • Higher volatility than large caps.
  • Sensitive to economic cycles.

This one of the good fund we recommended earlier in Best Mutual Funds to invest ₹ 10 Lakhs now in 2025.

#9 – Shriram Flexi Cap Fund

• Category: Flexi Cap Fund
• Objective: Invests across large, mid, and small caps.
• AUM: ₹ 134 Cr
• YTD 2025: -10%
• Returns:
  • 3M: 11%
  • 6M: -9%
  • 1Y: -6%
  • 3Y CAGR: 15%
    5Y CAGR: 19%
• Benefits
  • Dynamic allocation across market caps based on valuation and growth potential.
  • Offers diversification across different sectors and company sizes.
• Risks:
  • Higher allocation to mid and small caps can lead to short-term volatility.
  • Underperformance in unfavorable market cycles.

#10 – Edelweiss Recently Listed IPO Fund

• Category: Multi Cap Fund
• Objective: Focuses on newly listed companies post IPO.
• AUM: ₹ 843 Cr
• YTD 2025: -10%
• Returns:
  • 3M: 14%
  • 6M: -7%
  • 1Y: 11%
  • 3Y CAGR: 16%
  • 5Y CAGR: 25%
• Benefits:
  • Early exposure to high-potential companies.
  • Can benefit from IPO listing gains.
• Risks:
  • High volatility and risk of poor listing performance.
  • Lack of historical performance data.

While the short term performance is low, its long term performance is impressive. We reviewed this Recently Listed IPO Mutual Fund earlier.

#11 – Samco Active Momentum Fund

• Category: Sectoral/Thematic
• Objective: Follows momentum-based investment strategy.
• AUM: ₹ 860 Cr
• YTD 2025: -11%
• Returns:
• Benefits:
  • Aims to capture market rallies.
  • Systematic trend-following strategy.
• Risks:
  • Poor in range-bound or bearish markets.
  • Requires frequent portfolio rebalancing.

Investors can check 10 Mutual Funds with 15 Year Returns between 1247% to 1809%.

Conclusion

While some of these mutual funds have strong long-term performance, their poor showing in 2025 reminds investors that market phases can impact returns significantly. Sectoral and thematic funds are more volatile, while flexi-cap and mid-cap funds also carry their share of risks. Investors should always consider risk appetite, investment tenure, and financial goals before investing in any mutual fund scheme. Diversifying across categories and sticking to long-term goals can help ride out such temporary downturns.

Suresh KP is a seasoned financial expert with over 20 years of experience. He is NISM Certified Investment Adviser and Research Analyst. For more about his expertise and certifications, visit About Suresh KP

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