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.
- 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.
| Category | Benchmark |
| Aggressive Hybrid Fund | Crisil6535 |
| Dividend Yield Fund | Nifty 100 TRI |
| ELSS | N200TRI |
| Focussed Fund | Nifty Largemidcap 250 TRI |
| Large & Mid Cap Fund | Nifty Largemidcap 250 TRI |
| Large Cap Fund | Nifty 100 TRI |
| Mid Cap Fund | NiftyMidcap150TRI |
| Multi Cap Fund | Nifty Largemidcap 250 TRI |
| Sectoral/ Thematic | Nifty 100 TRI |
| Sectoral/ Thematic (international) | Nifty 100 TRI |
| Small Cap Fund | NiftyMidcap150TRI |
| Value Fund | Nifty 100 TRI |
We are left with 140 funds after applying the above filter.
Aggressive Hybrid Funds
| JM Equity Hybrid Fund (Direct) – Growth Option |
| Franklin India Equity Hybrid Fund – Direct – Growth |
| Tata Hybrid Equity Fund -Direct Plan- Growth |
| UTI – Hybrid Equity Fund -Direct Plan – Growth |
| Nippon India Equity Hybrid Fund – Direct Plan Growth Plan |
| Aditya Birla Sun Life Equity Hybrid’95 Fund – Direct Plan-Growth |
| Edelweiss Aggressive Hybrid Fund(G)-Direct Plan |
| LIC MF Equity Hybrid Fund-Direct Plan-Growth |
| L&T Hybrid Equity Fund – Direct Plan-Growth |
| BARODA HYBRID EQUITY FUND – Plan B (Direct) – Growth Option |
| Shriram Hybrid Equity Fund- Direct Growth |
| DHFL Pramerica Hybrid Equity Fund – Direct Plan – Growth |
| IDBI Hybrid Equity Fund Growth Direct |
| IDFC Hybrid Equity Fund-Direct Plan-Growth |
Dividend Yield Funds
| UTI-Dividend Yield Fund.-Growth-Direct |
| Aditya Birla Sun Life Dividend Yield Fund – Growth – Direct Plan |
| ICICI Prudential Dividend Yield Equity Fund Direct Plan Growth Option |
ELSS Funds
| Franklin India TAXSHIELD – Direct – Growth |
| HDFC TaxSaver -Direct Plan – Growth Option |
| HSBC Tax Saver Equity Fund – Growth Direct |
| Nippon India Tax Saver Fund – Direct Plan Growth Plan – Growth Option |
| SBI MAGNUM TAXGAIN SCHEME 1993 – DIRECT PLAN -GROWTH |
| Sundaram Diversified Equity – A Long-term Tax Saver Fund – Direct Plan – Growth Option |
| Union Tax Saver Scheme – Direct Plan – Growth Option |
| Edelweiss Long Term Equity Fund (Tax Savings) – Direct Plan-Growth Option |
| Principal Personal Tax Saver Fund – Direct Plan |
| IDBI Equity Advantage Fund – Growth Direct |
| Baroda ELSS 96 Plan B(Direct) -Growth Option |
| Essel Long Term Advantage Fund- Direct Plan- Growth Option |
| Mahindra Mutual Fund Kar Bachat Yojana Direct Plan – Growth |
Focussed Funds
| HDFC Focused 30 Fund -Direct Plan – Growth Option |
| DSP Focus Fund – Direct Plan – Growth |
| IDFC Focused Equity Fund-Direct Plan-Growth |
| Nippon India Focused Equity Fund – Direct Plan Growth Plan – Growth Option |
| Aditya Birla Sun Life Focused Equity Fund – Growth – Direct Plan |
| ICICI Prudential Focused Equity Fund – Direct Plan – Growth |
| Principal Focused Multicap Fund- Direct Plan – Growth Option |
| Sundaram Select Focus – Direct Plan – Growth Option |
| Motilal Oswal Focused 25 Fund (MOF25)- Direct Plan Growth Option |
Large & Midcap Funds
| Franklin India Equity Advantage Fund – Direct – Growth |
| BOI AXA Large & Mid Cap Equity Fund Direct Plan-Growth |
| ICICI Prudential Large & Mid Cap Fund – Direct Plan – Growth |
| IDFC Core Equity Fund-Direct Plan-Growth |
| L&T Large and Midcap Fund-Direct Plan-Growth |
| Nippon India Vision Fund – Direct Plan Growth Plan – Growth Option |
| UTI – Core Equity Fund – Direct Plan – Growth Option |
| HDFC Growth Opportunities Fund – Direct Growth Plan |
Largecap funds
| Franklin India Bluechip Fund- Direct – Growth |
| HDFC Top 100 Fund -Direct Plan – Growth Option |
| DSP Top 100 Equity Fund – Direct Plan – Growth |
| Essel Large Cap Equity Fund-Direct Plan-Growth Option |
| HSBC Large Cap Equity Fund – Growth Direct |
| IDFC Large Cap Fund-Direct Plan-Growth |
| L&T India Large Cap Fund – Direct Plan – Growth |
| Tata Large Cap Fund -Direct Plan Growth |
| Aditya Birla Sun Life Frontline Equity Fund – Growth – Direct Plan |
| IDBI India Top 100 Equity Fund Growth Direct |
| JM Large Cap Fund (Direct) – Growth Option |
| Taurus Largecap Equity Fund-Direct Plan-Growth Option |
| Baroda Large cap Fund – Plan B (Direct) – Growth Option |
| DHFL Pramerica Large Cap Fund – Direct Plan – Growth |
Midcap funds
| Mirae Asset Midcap Fund(G)-Direct Plan |
| Union Midcap Fund(G)-Direct Plan |
| HSBC Mid Cap Fund(G)-Direct Plan |
| ITI Mid Cap Fund(G)-Direct Plan |
| Aditya Birla Sun Life Midcap Fund – Growth – Direct Plan |
| Baroda Mid-cap Fund- Plan B (Direct) – Growth Option |
| BOI AXA MID & SMALL CAP EQUITY & DEBT FUND – DIRECT PLAN GROWTH |
| DHFL Pramerica Midcap Opportunities Fund – Direct Plan – Growth Option |
| Franklin India Prima Fund – Direct – Growth |
| HDFC Mid Cap Opportunities Fund -Direct Plan – Growth Option |
| IDBI Midcap Fund Growth Direct |
| Motilal Oswal Midcap 30 Fund (MOF30)-Direct Plan-Growth Option |
| Quant Mid Cap Fund-Growth Option-Direct Plan |
| Nippon India Growth Fund – Direct Plan Growth Plan – Growth Option |
| SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH |
| Sundaram Mid Cap Fund- Direct Plan – Growth Option |
| Taurus Discovery (Midcap) Fund-Direct Plan-Growth Option |
| UTI Mid Cap Fund-Growth Option- Direct |
| PGIM India Midcap Opportunities Fund Direct Plan |
Multicap funds
| Franklin India Equity Fund – Direct – Growth |
| HDFC Equity Fund -Direct Plan – Growth Option |
| HSBC Multi Cap Equity Fund – Growth Direct |
| ICICI Prudential MidCap Fund – Direct Plan – Growth |
| ICICI Prudential Multicap Fund – Direct Plan – Growth |
| IDFC Multi Cap Fund-Direct Plan-Growth |
| L&T Equity Fund-Direct Plan-Growth |
| Nippon India Multi Cap Fund – Direct Plan Growth Plan – Growth Option |
| Taurus Starshare (Multi Cap) Fund -Direct Plan-Growth Option |
| Union Multi Cap Fund – Direct Plan – Growth Option |
| BARODA MULTI CAP FUND – Plan B (Direct) – Growth Option |
| LIC MF Multicap Fund-Direct Plan-Growth |
| IDBI DIVERSIFIED EQUITY FUND Growth Direct |
Sectoral or Thematic funds
| Franklin India Opportunities Fund – Direct – Growth |
| HDFC Infrastructure Fund -Direct Plan – Growth Option |
| Canara Robeco Infrastructure-Direct Plan – Growth |
| HSBC Infrastructure Equity Fund – Growth Direct |
| ICICI Prudential Infrastructure Fund – Direct Plan – Growth |
| IDFC Infrastructure Fund-Direct Plan-Growth |
| Invesco India PSU Equity Fund – Direct Plan – Growth |
| Nippon India Banking Fund – Direct Plan Growth Plan – Growth Option |
| Nippon India Power & Infra Fund – Direct Plan Growth Plan – Growth Option |
| Nippon India Quant Fund – Direct Plan Growth Plan – Growth Option |
| Tata Infrastructure Fund -Direct Plan Growth |
| UTI India Consumer Fund – Direct Plan – Growth Option |
| UTI Infrastructure Fund-Growth Option- Direct |
| UTI-Transpotation and Logistics Fund-Growth Option- Direct |
| Aditya Birla Sun Life Infrastructure Fund – Growth – Direct Plan |
| Baroda Banking and Financial Services Fund – Plan B (Direct) – Growth Option |
| SBI INFRASTRUCTURE FUND – DIRECT PLAN – GROWTH |
| SBI PSU Fund – DIRECT PLAN – GROWTH |
| ICICI Prudential Exports & Services Fund – Direct Plan – Growth |
| LIC MF Infrastructure Fund-Direct Plan-Growth |
| Sundaram Infrastructure Advantage Fund (Erstwhile Sundaram Capex Opportunities) Direct Plan Growth |
| L&T Business Cycles Fund – Direct Plan – Growth |
| Kotak Infrastructure & Economic Reform Fund- Direct Plan- Growth Option |
| Aditya Birla Sun Life Manufacturing Equity Fund – Direct Plan – Growth |
| LIC MF Banking and Financial Services Fund-Direct Plan-Growth |
Sectoral/ Thematic (international)
| Franklin Asian Equity Fund – Direct – Growth |
| Aditya Birla Sun Life Commodity Equities Fund – Global Agri Plan – Growth – Direct Plan |
| Aditya Birla Sun Life International Equity Fund – Plan A – Growth – Direct Plan |
| Aditya Birla Sun Life International Equity Fund – Plan B – Growth – Direct Plan |
| Nippon India Japan Equity Fund- Direct Plan- Growth Plan- Growth Option |
Small Cap Funds
| ITI Small Cap Fund(G)-Direct Plan |
| PGIM India Small Cap Fund(G)-Direct Plan |
| UTI Small Cap Fund(G)-Direct Plan |
| Aditya Birla Sun Life Small Cap Fund – Growth – Direct Plan |
| Franklin India Smaller Companies Fund – Direct – Growth |
| HSBC Small Cap Equity Fund – Growth Direct |
| ICICI Prudential Smallcap Fund – Direct Plan – Growth |
| IDBI Small Cap Fund – Growth Direct |
| Principal Small Cap Fund – Direct Plan – Growth Option |
| Sundaram Small Cap Fund – Direct Plan – Growth Option |
| Union Small Cap Fund – Direct Plan – Growth Option |
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 |
| Indiabulls Value Discovery 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 if you found this useful
About The Author
Dr 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 for promoting unbiased, commission-free investment advice.
Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video! ⇐ More than 900 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 2700 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 620 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!
My new book for kids: “Chinchu gets a superpower!” is now available!
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, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? 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 parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
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 (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. 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
Published by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This 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
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, 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 199 (instant download)
Free android apps