Mutual Fund Losers: Most mutual fund stories focus on top-performing schemes and their stellar returns. But what about the funds that have been on the other end of the spectrum? In this article, we have highlighted mutual fund schemes that delivered negative returns of more than 18% over the past 12 months. The list includes funds such as Kotak Technology Fund, Nippon India Nifty Realty Index Fund, among others. We also explore the factors behind their weak performance and discuss what investors can do if these schemes are part of their portfolios.
Mutual Fund Losers: Top 5 schemes with over 18% negative returns in 12 months
Systematic investment plans (SIPs) have become quite popular among investors. However, the market has been quite volatile lately, due to which many investors are worried about their SIP returns.
According to various media reports, there are a number of investors who have shared that despite a consistent investment period of 16-18 months, their portfolios are showing
negative returns or no growth at all. Which is compelling them to wonder, what’s wrong?
It simply means lakhs of investors are seeing little to no growth and, in some cases, even losses in their SIP portfolios. Naturally, this brings up an important question: what should investors do now?
Here’s what you are doing wrong and how to fix mistakes
During market volatility, it’s quite normal for mutual fund investments to show short-term losses. However, that doesn’t mean an investor should rush to redeem their investments out of fear. Instead, it’s important to stay calm, review their fund’s performance carefully, and consult their financial advisor before making any decision.
Remember, if you redeem your equity mutual fund investments within one year, you may have to pay an exit load of around 1 per cent in most cases, which can further reduce your returns.
Before investing, assess your risk tolerance to ensure your strategy aligns with your financial goals, time horizon, and comfort with market ups and downs.
If your mutual fund portfolio is in the red, take a step back and assess the bigger picture. Compare your fund’s performance with similar schemes in the same category and across different categories.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
