Mutual Fund SIP returns in negative: After hitting its peak in December 2025, the stock market saw a sharp decline, with the Sensex falling from the 86,159 level and slipping below 72,000 last month. The market decline has caused the average NAV of equity mutual funds to fall by approximately 14 per cent. Although investors continue to invest heavily in mutual funds, SIP returns in many equity schemes are currently weak or even negative.
According to Kotak Institutional Equities, investors have been consistently investing through Systematic Investment Plans, recording an inflow of Rs 32,087 crore in March alone. Nevertheless, most of the funds were invested between July 2024 and March 2026. This is a period marked by market decline and high volatility. This is why the value of recent investments is currently appearing lower.
Mutual Fund SIP returns: 10 funds with the worst returns in 1 year
Lump Sum: 10 Funds with Worst Returns in 1 Year
According to the brokerage houses, in reality, the systematic investment plans have not failed. The recent decline in the market and volatility has impacted the short-term returns. However, the long-term returns are on the right track.
In the past few months, popular categories like small cap and thematic funds have underperformed compared to the broader market, putting pressure on both SIP and lump sum returns. However, during this period, investors have shown strong interest in flexi-cap funds, continuing to invest heavily in this category.
SIP investments continue despite market weakness
Retail participation increased across most fund categories in March 2026. Additionally, during the first quarter of 2026, investments saw a sharp rise in passive funds, multi-asset funds, and flexi-cap funds.
In recent months, foreign institutional investors (FIIs) have been continuously selling in the market. However, a significant portion of this selling pressure has been absorbed by domestic mutual funds, helping provide stability to the market.
(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.)
