Synopsis of Mutual Fund Performance
Out of 487 Equity Mutual Funds, 44 Delivered Negative Returns
The world of mutual funds can be a thrilling and unpredictable place. Recently, a study by ETMutualFunds found that out of 487 equity mutual funds, 44 delivered negative returns over the last year. This translates to around 9% of the schemes that experienced losses. The decline in performance was not limited to a few funds, but rather was a widespread phenomenon that affected several large and well-established mutual fund houses.
Quant Mutual Fund: The Largest Underperformer
Among the mutual funds that delivered negative returns, Quant Mutual Fund was the largest underperformer, with some of its schemes losing as much as 14.82% over the last year. This includes the Samco Flexi Cap Fund, which lost an impressive 14.82% in the last year, followed by the Quant Infrastructure Fund, which lost 10.64% in the same period.
Other Mutual Funds That Underperformed
While Quant Mutual Fund was the largest underperformer, several other mutual funds also delivered negative returns over the last year. Some of the notable underperformers include:
- Nippon India Taiwan Equity Fund, which delivered a negative return of around 10.42%
- Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF, which lost 7.35%
- Quant Active Fund, which lost 7.34%
Reasons for Underperformance
So, what led to the underperformance of these mutual funds? According to experts, the main reason was the failure to accurately predict market trends. Shweta Rajani of Anand Rathi Wealth explained that Quant Mutual Fund’s underperformance was due to its cautious approach to the market, which was triggered by a series of global events, including the US elections. However, the markets continued to move up, and the funds were left with large cash holdings, which ultimately led to significant losses.
Other Factors Contributing to Underperformance
In addition to the failure to predict market trends, other factors also contributed to the underperformance of these mutual funds. For example, some funds had a high portion of large-cap holdings, which did not work in their favor during the last year. Others had a high cash allocation, which also led to losses.
It is essential for investors to be aware of the potential risks associated with investing in mutual funds. While some funds may deliver exceptional returns, others may underperform, leading to losses. Investors should always consider their risk appetite, investment horizon, and goals before making any investment decisions.
In conclusion, the recent performance of equity mutual funds has been a mixed bag. While some funds have delivered exceptional returns, others have underperformed, leading to significant losses. As investors, it is essential to be aware of the potential risks and rewards associated with investing in mutual funds and to make informed decisions based on our individual needs and goals.
| Fund Name | Return (%) |
| Nippon India Taiwan Equity Fund | -10.42% |
| Mirae Asset Global Electric & Autonomous Vehicles ETFs FoF | -7.35% |
| Quant Active Fund | -7.34% |
In conclusion, the recent performance of equity mutual funds has been a mixed bag.
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