List of worst equity mutual funds (Jan 2013 to Apr 2022)

Published: April 30, 2022 at 6:00 am

This is a list of the worst-performing equity mutual funds over every possible five, four, and three periods between 1st Jan 2013 (introduction date of direct plans) to April 8th 2022.

Some caveats before we begin:  (1) The definition of a “worst mutual fund” is as arbitrary as the definition of a “best mutual fund”. We hope that it is a reasonable definition, considering the high fees demanded by the MF industry.  This is one of the highest in the world, according to a Morningstar study. (2) We choose a representative category benchmark and compare the fund’s returns with the benchmark over the above-mentioned periods. The choice of the benchmark is also arbitrary but reasonably representative. (3) SEBI mutual fund categorization rules were fully in place by May-June 2018. Some funds (particularly those from smaller AMCs) may have changed significantly changed in style after that. An exhaustive filtration taking these changes into account is beyond the capabilities of this study.

(4) A fund labelled as “worst” means a careful, deeper investigation of its past performance is necessary, particularly if you invest in it or consider future investments in it. (5) Sectoral funds/ thematic funds are compared with Nifty 100 TRI. As a data analyst, this choice is incorrect. However, as an investor, it makes sense, and that is more important! We are not trying to submit a thesis here! If a thematic fund fails against a large cap index, it is an avoidable fund for most investors.

How a worst mutual fund is defined

Say there are 800 five year return periods possible; 1025 four year return periods; 1300 three year return periods; 1500 two year return periods. We shall define a fund as “worst” if it has beaten the benchmark for less than 50% of the 5Y and 4Y and 3Y return periods.

Let us take, for example, Principal Focused Multicap Fund- Direct Plan. We compare it with Nifty Largemidcap 250 TRI.


Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!



    🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
    • No of rolling return entries (3 Years) 1472
    • No of times the fund has outperformed the index (3 years) 552
    • rolling return outperformance Consistency Score (3 years) 38%
    • No of rolling return entries (4 Years) 1228
    • No of times the fund has outperformed the index (4 years) 506
    • rolling return outperformance Consistency Score (4 years) 41%
    • No of rolling return entries (5 Years) 981
    • No of times the fund has outperformed the index (5 years) 337
    • rolling return outperformance Consistency Score (5 years) 34%

    Using the April 2022 Equity Mutual Fund Screener, we filer out all funds with a rolling return outperformance consistency of less than 50% over five years and four years and three years. This will be our definition of a “worst fund”. We make no claim of superiority over this definition. We just feel this is reasonable while appreciating that not all readers will agree with the methodology used.

    NOTE: Investors holding these funds need not exit them in a hurry. Please use this as a sign to dig deeper and re-evaluate these funds. A fund absent from this list does not mean it is a “good fund” or an outperformer!

    The filtration process

    A total of 378 equity mutual funds were studied from these categories and against these benchmarks.

    CategoryBenchmark
    Aggressive Hybrid FundCrisil6535
    Dividend Yield FundNifty 100 TRI
    ELSSN200TRI
    Focussed FundNifty Largemidcap 250 TRI
    Large & Mid Cap FundNifty Largemidcap 250 TRI
    Large Cap FundNifty 100 TRI
    Mid Cap FundNiftyMidcap150TRI
    Multi Cap FundNifty Largemidcap 250 TRI
    Sectoral/ ThematicNifty 100 TRI
    Sectoral/ Thematic (international)Nifty 100 TRI
    Small Cap FundNiftyMidcap150TRI
    Value FundNifty 100 TRI

    We are left with 140 funds after applying the above filter.

    Aggressive Hybrid Funds

    Nippon India Equity Hybrid Fund  – Direct Plan Growth Plan
    Franklin India Equity Hybrid Fund – Direct – Growth
    BARODA HYBRID EQUITY FUND – Plan B (Direct) – Growth Option
    Aditya Birla Sun Life Equity Hybrid’95 Fund – Direct Plan-Growth
    L&T Hybrid Equity Fund – Direct Plan-Growth
    UTI – Hybrid Equity Fund -Direct Plan – Growth
    Edelweiss Aggressive Hybrid Fund(G)-Direct Plan
    Tata Hybrid Equity Fund -Direct Plan- Growth
    JM Equity Hybrid Fund (Direct) – Growth Option

    Dividend Yield Funds

    Aditya Birla Sun Life Dividend Yield Fund – Growth – Direct Plan
    UTI-Dividend Yield Fund.-Growth-Direct

    ELSS Funds

    Edelweiss Long Term Equity Fund (Tax Savings) – Direct Plan-Growth Option
    HSBC Tax Saver Equity Fund – Growth Direct
    Sundaram Diversified Equity – A Long-term Tax Saver Fund – Direct Plan – Growth Option
    SBI MAGNUM TAXGAIN SCHEME 1993 – DIRECT PLAN -GROWTH
    IDBI Equity Advantage Fund – Growth Direct
    Franklin India TAXSHIELD – Direct – Growth
    Nippon India Tax Saver Fund – Direct Plan Growth Plan – Growth Option
    HDFC TaxSaver -Direct Plan – Growth Option
    Union Tax Saver Scheme – Direct Plan – Growth Option
    Principal Personal Tax Saver Fund – Direct Plan

    Focussed Funds

    Nippon India Focused Equity Fund – Direct Plan Growth Plan – Growth Option
    Motilal Oswal Focused 25 Fund (MOF25)- Direct Plan Growth Option
    Principal Focused Multicap Fund- Direct Plan – Growth Option
    IDFC Focused Equity Fund-Direct Plan-Growth
    Sundaram Select Focus – Direct Plan – Growth Option
    DSP  Focus Fund – Direct Plan – Growth
    Aditya Birla Sun Life Focused Equity Fund – Growth – Direct Plan
    ICICI Prudential Focused Equity Fund – Direct Plan – Growth

    Large & Midcap Funds

    IDFC Core Equity Fund-Direct Plan-Growth
    Franklin India Equity Advantage Fund – Direct – Growth
    L&T Large and Midcap Fund-Direct Plan-Growth

    Largecap funds

    Essel Large Cap Equity Fund-Direct Plan-Growth Option
    IDBI India Top 100 Equity Fund Growth Direct
    HDFC Top 100 Fund -Direct Plan – Growth Option
    Tata Large Cap Fund -Direct Plan Growth
    HSBC Large Cap Equity Fund – Growth Direct
    Aditya Birla Sun Life Frontline Equity Fund – Growth – Direct Plan
    Franklin India Bluechip Fund- Direct – Growth
    JM Large Cap Fund (Direct) – Growth Option
    L&T India Large Cap Fund – Direct Plan – Growth
    Baroda Large cap Fund – Plan B (Direct) – Growth Option
    IDFC Large Cap Fund-Direct Plan-Growth

    Midcap funds

    Tata Mid Cap Growth Fund – Direct Plan Growth
    DSP  Midcap Fund – Direct Plan – Growth
    SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH
    L&T Mid Cap Fund-Direct Plan-Growth
    UTI Mid Cap Fund-Growth Option- Direct
    HDFC Mid Cap Opportunities Fund -Direct Plan – Growth Option
    Sundaram Mid Cap Fund- Direct Plan – Growth Option
    Franklin India Prima Fund – Direct – Growth
    DHFL Pramerica Midcap Opportunities Fund – Direct Plan – Growth Option
    PGIM India Midcap Opportunities Fund Direct Plan
    Quant Mid Cap Fund-Growth Option-Direct Plan
    Motilal Oswal Midcap 30 Fund (MOF30)-Direct Plan-Growth Option
    Nippon India Growth Fund – Direct Plan Growth Plan – Growth Option
    BOI AXA MID & SMALL CAP EQUITY & DEBT FUND – DIRECT PLAN GROWTH
    Baroda Mid-cap Fund- Plan B (Direct) – Growth Option

    Multicap funds

    IDBI DIVERSIFIED EQUITY FUND Growth Direct
    Union Multi Cap Fund – Direct Plan – Growth Option
    ICICI Prudential Multicap Fund – Direct Plan –  Growth
    Franklin India Equity Fund – Direct – Growth
    IDFC Multi Cap Fund-Direct Plan-Growth
    HSBC Multi Cap Equity Fund – Growth Direct
    HDFC Equity Fund -Direct Plan – Growth Option
    BARODA MULTI CAP FUND – Plan B (Direct) – Growth Option

    Sectoral or Thematic funds

    Tata Infrastructure Fund -Direct Plan Growth
    Baroda Banking and Financial Services Fund – Plan B (Direct) – Growth Option
    Canara Robeco Infrastructure-Direct Plan – Growth
    SBI INFRASTRUCTURE FUND –  DIRECT PLAN – GROWTH
    Franklin India Opportunities Fund – Direct – Growth
    ICICI Prudential Exports & Services Fund – Direct Plan – Growth
    Nippon India Banking Fund – Direct Plan Growth Plan – Growth Option
    IDFC  Infrastructure Fund-Direct Plan-Growth
    Aditya Birla Sun Life Infrastructure Fund – Growth – Direct Plan
    Invesco India PSU Equity Fund – Direct Plan – Growth
    UTI-Transpotation and Logistics  Fund-Growth Option- Direct
    Nippon India Power & Infra Fund – Direct Plan Growth Plan – Growth Option
    HSBC Infrastructure Equity Fund – Growth Direct
    ICICI Prudential Infrastructure Fund – Direct Plan –  Growth
    Sundaram Infrastructure Advantage Fund (Erstwhile Sundaram Capex Opportunities) Direct Plan Growth
    HDFC Infrastructure Fund -Direct Plan – Growth Option
    UTI Infrastructure Fund-Growth Option- Direct
    Aditya Birla Sun Life Manufacturing Equity Fund – Direct Plan – Growth
    UTI India Consumer Fund – Direct Plan – Growth Option

    Sectoral/ Thematic (international)

    Franklin Asian Equity Fund – Direct – Growth
    Aditya Birla Sun Life International Equity Fund – Plan A – Growth – Direct Plan
    Nippon India Japan Equity Fund- Direct Plan- Growth Plan- Growth Option

    Small Cap Funds

    DSP  Small Cap Fund – Direct Plan – Growth
    Kotak-Small Cap Fund – Growth – Direct
    HSBC Small Cap Equity Fund – Growth Direct
    Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan
    Sundaram Small Cap Fund – Direct Plan – Growth Option
    Franklin India Smaller Companies Fund – Direct – Growth
    Quant Small Cap Fund-Growth Option-Direct Plan
    Union Small Cap Fund – Direct Plan – Growth Option
    ICICI Prudential Smallcap Fund – Direct Plan – Growth

    Value funds

    Templeton India Value Fund – Direct – Growth
    ICICI Prudential Value Discovery Fund – Direct Plan – Growth
    Aditya Birla Sun Life Pure Value Fund – Growth – Direct Plan
    UTI Value Opportunities Fund- Direct Plan – Growth Option

     

    To reiterate: Investors holding these funds need not exit them in a hurry. Please use this as a sign to dig deeper and re-evaluate these funds. A fund absent from this list does not mean it is a “good fund” or an outperformer!

    Do share this article with your friends using the buttons below.

    🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
    Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
    New Tool! => Track your mutual funds and stocks investments with this Google Sheet!
    • Follow us on Google News.
    • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
    • Join our YouTube Community and explore more than 1000 videos!
    • Have a question? Subscribe to our newsletter with this form.
    • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

    Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!



      Explore the site! Search among our 2000+ articles for information and insight!

      About The Author

      Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
      Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
      Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
      Our new book for kids: “Chinchu gets a superpower!” is now available!
      Both boy and girl version covers of Chinchu gets a superpower
      Both boy and girl version covers of Chinchu gets a superpower.
      Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
      Feedback from a young reader after reading Chinchu gets a Superpower (small version)
      Feedback from a young reader after reading Chinchu gets a Superpower!
      Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
      Buy the book: Chinchu gets a superpower for your child!
      How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
      Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
      We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
      About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
      Connect with us on social media
      Our publications

      You Can Be Rich Too with Goal-Based Investing

      You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
      Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

      Your Ultimate Guide to Travel

      Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)