It is a checklist of the worst-performing fairness mutual funds over each doable 5, 4, and three intervals between 1st Jan 2013 (introduction date of direct plans) to Jan fifth 2023.
Some caveats earlier than we start: (1) The definition of a “worst mutual fund” is as arbitrary because the definition of a “finest mutual fund”. We hope that it’s a cheap definition, contemplating the excessive charges demanded by the MF trade. This is among the highest on this planet, in response to a Morningstar examine. (2) We select a consultant class benchmark and examine the fund’s returns with the benchmark over the above-mentioned intervals. The selection of the benchmark can be arbitrary however moderately consultant. (3) SEBI mutual fund categorization guidelines have been absolutely in place by Might-June 2018. Some funds (significantly these from smaller AMCs) might have modified considerably modified in fashion after that. An exhaustive filtration taking these modifications into consideration is past the capabilities of this examine.
(4) A fund labelled as “worst” means a cautious, deeper investigation of its previous efficiency is important, significantly for those who put money into it or contemplate future investments in it. (5) Sectoral funds/ thematic funds are in contrast with Nifty 100 TRI. As an information analyst, this selection is wrong. Nonetheless, as an investor, it is sensible, and that’s extra vital! We’re not attempting to submit a thesis right here! If a thematic fund fails in opposition to a big cap index, it’s an avoidable fund for many buyers.
How a worst mutual fund is outlined
Say there are 800 five-year return intervals doable; 1025 four-year return intervals; 1300 three-year return intervals. We will outline a fund as “worst” if it has crushed the benchmark for lower than 50% of the 5Y and 4Y and 3Y return intervals.
Allow us to take, for instance, Sundaram Targeted Fund (Previously Referred to as Principal Targeted Multicap Fund)- Direct Plan – Progress Choice. We examine it with Nifty Largemidcap 250 TRI.
- No of rolling return entries (3 Years) 1469
- No of occasions the fund has outperformed the index (3 years) 517
- rolling return outperformance Consistency Rating (3 years) 35%
- No of rolling return entries (4 Years) 1224
- No of occasions the fund has outperformed the index (4 years) 534
- rolling return outperformance Consistency Rating (4 years) 41%
- No of rolling return entries (5 Years) 976
- No of occasions the fund has outperformed the index (5 years) 226
- rolling return outperformance Consistency Rating (5 years) 23%
Utilizing our month-to-month Fairness Mutual Fund Screener, we filer out all funds with a rolling return outperformance consistency of lower than 50% over 5 years and 4 years and three years. This can be our definition of a “worst fund”. We make no declare of superiority over this definition. We simply really feel that is cheap whereas appreciating that not all readers will agree with the methodology used.
NOTE: Traders holding these funds needn’t exit them in a rush. Please use this as an indication to dig deeper and re-evaluate these funds. A fund absent from this checklist doesn’t imply it’s a “good fund” or an outperformer!
The filtration course of
A complete of 391 fairness mutual funds have been studied from these classes and in opposition to these benchmarks.
| Class | Benchmark |
| Aggressive Hybrid Fund | Crisil6535 |
| Dividend Yield Fund | Nifty 100 TRI |
| ELSS | N200TRI |
| Focussed Fund | Nifty Largemidcap 250 TRI |
| Giant & Mid Cap Fund | Nifty Largemidcap 250 TRI |
| Giant Cap Fund | Nifty 100 TRI |
| Mid Cap Fund | NiftyMidcap150TRI |
| Multi Cap Fund | Nifty500 Multicap 50:25:25 TRI |
| Flexi Cap Fund | Nifty Largemidcap 250 TRI |
| Sectoral/ Thematic | Nifty 100 TRI |
| Sectoral/ Thematic (worldwide) | Nifty 100 TRI |
| Small Cap Fund | NiftyMidcap150TRI |
| Worth Fund | Nifty 100 TRI |
We’re left with 132 funds after making use of the above filter.
Aggressive Hybrid Funds
| JM Fairness Hybrid Fund (Direct) – Progress Choice |
| Franklin India Fairness Hybrid Fund – Direct – Progress |
| Tata Hybrid Fairness Fund -Direct Plan- Progress Choice |
| UTI – Hybrid Fairness Fund -Direct Plan – Progress |
| Aditya Birla Solar Life Fairness Hybrid’95 Fund – Direct Plan-Progress |
| Nippon India Fairness Hybrid Fund- Direct Plan Progress Plan |
| LIC MF Fairness Hybrid Fund-Direct Plan-Progress |
| L&T Hybrid Fairness Fund – Direct Plan-Progress |
| Baroda BNP Paribas Aggressive Hybrid Fund- DIRECT PLAN – GROWTH OPTION |
| Shriram Hybrid Fairness Fund- Direct Progress |
| PGIM India Hybrid Fairness Fund – Direct Plan – Progress |
| IDBI Hybrid Fairness Fund Progress Direct |
| IDFC Hybrid Fairness Fund-Direct Plan Progress |
Dividend Yield Funds
| UTI-Dividend Yield Fund.-Progress-Direct |
| Aditya Birla Solar Life Dividend Yield Fund – Progress – Direct Plan |
| ICICI Prudential Dividend Yield Fairness Fund Direct Plan Progress Choice |
ELSS Funds
| Franklin India TAXSHIELD – Direct – Progress |
| HDFC Taxsaver – Progress Choice – Direct Plan |
| HSBC Tax Saver Fairness Fund – Progress Direct |
| Nippon India Tax Saver Fund – Direct Plan Progress Plan – Progress Choice |
| SBI LONG TERM EQUITY FUND – DIRECT PLAN -GROWTH |
| LIC MF Tax Plan-Direct Plan-Progress |
| Edelweiss Lengthy Time period Fairness Fund (Tax Financial savings) – Direct Plan-Progress Choice |
| L&TTax Benefit Fund-Direct Plan-Progress |
| IDBI Fairness Benefit Fund – Progress Direct |
| Shriram Lengthy Time period Fairness Fund – Direct Progress |
| Sundaram Tax Financial savings Fund(G)-Direct Plan |
| UTI – Lengthy Time period Fairness Fund (Tax Saving) – Direct Plan – Progress Choice |
| Principal Private Tax Saver Fund – Direct Plan |
| Tata India Tax Financial savings Fund-Progress-Direct Plan |
| Union Lengthy Time period Fairness Fund – Direct Plan – Progress Choice |
| Navi ELSS Tax Saver Fund- Direct Plan- Progress Choice |
| Mahindra Manulife ELSS Kar Bachat Yojana – Direct Plan -Progress |
| Indiabulls Tax Financial savings Fund- Direct Plan- Progress Choice |
Focussed Funds
| Franklin India Targeted Fairness Fund – Direct – Progress |
| HDFC Targeted 30 Fund – Progress Choice – Direct Plan |
| DSP Focus Fund – Direct Plan – Progress |
| IDFC Targeted Fairness Fund-Direct Plan-Progress |
| Aditya Birla Solar Life Targeted Fairness Fund – Progress – Direct Plan |
| ICICI Prudential Targeted Fairness Fund – Direct Plan – Progress |
| Motilal Oswal Targeted 25 Fund (MOF25)- Direct Plan Progress Choice |
| Sundaram Multi Cap Fund (Previously Referred to as Principal Multi Cap Progress Fund)-Direct Plan – Progress Choice |
| Sundaram Targeted Fund (Previously Referred to as Principal Targeted Multicap Fund)- Direct Plan – Progress Choice |
| IDBI FOCUSED 30 EQUITY FUND – Progress Direct |
Giant & Midcap Funds
| Franklin India Fairness Benefit Fund – Direct – Progress |
| BOI AXA Giant & Mid Cap Fairness Fund Direct Plan-Progress |
| ICICI Prudential Giant & Mid Cap Fund – Direct Plan – Progress |
| IDFC Core Fairness Fund-Direct Plan-Progress |
| Nippon India Imaginative and prescient Fund – Direct Plan Progress Plan – Progress Choice |
| Tata Giant & MId Cap Fund -Direct Plan- Progress Choice |
| UTI – Core Fairness Fund – Direct Plan – Progress Choice |
| Aditya Birla Solar Life Fairness Benefit Fund – Progress – Direct Plan |
| L&T Giant and Midcap Fund-Direct Plan-Progress |
| HDFC Giant and Mid Cap Fund – Progress Choice – Direct Plan |
Giant cap funds
| Franklin India Bluechip Fund- Direct – Progress |
| HDFC Prime 100 Fund – Progress Choice – Direct Plan |
| DSP Prime 100 Fairness Fund – Direct Plan – Progress |
| HSBC Giant Cap Fairness Fund – Progress Direct |
| IDFC Giant Cap Fund-Direct Plan-Progress |
| Tata Giant Cap Fund -Direct Plan Progress Choice |
| Aditya Birla Solar Life Frontline Fairness Fund – Progress – Direct Plan |
| JM Giant Cap Fund (Direct) – Progress Choice |
| Taurus Largecap Fairness Fund – Direct Plan – Progress |
| LIC MF Giant Cap Fund-Direct Plan-Progress |
| L&T India Giant Cap Fund – Direct Plan – Progress |
| Navi Giant Cap Fairness Fund-Direct Plan-Progress Choice |
| PGIM India Giant Cap Fund – Direct Plan – Progress |
| Union Largecap Fund – Direct Plan – Progress Choice |
Midcap funds
| Franklin India Prima Fund – Direct – Progress |
| HDFC Mid-Cap Alternatives Fund – Progress Choice – Direct Plan |
| ICICI Prudential MidCap Fund – Direct Plan -Progress |
| Nippon India Progress Fund – Direct Plan Progress Plan – Progress Choice |
| SBI Magnum MIDCAP FUND – DIRECT PLAN – GROWTH |
| Taurus Discovery (Midcap) Fund – Direct Plan – Progress |
| Sundaram Mid Cap Fund Direct Plan – Progress |
| Aditya Birla Solar Life Midcap Fund – Progress – Direct Plan |
| quant Mid Cap Fund – Progress Choice – Direct Plan |
| BARODA BNP PARIBAS Mid Cap Fund – Direct Plan – Progress Choice |
| Motilal Oswal Midcap 30 Fund (MOF30)-Direct Plan-Progress Choice |
| BOI AXA MID & SMALL CAP EQUITY & DEBT FUND – DIRECT PLAN GROWTH |
| IDBI Midcap Fund Progress Direct |
Multicap funds
| IDFC MULTI CAP FUND – GROWTH – DIRECT PLAN |
| Nippon India Multi Cap Fund – Direct Plan Progress Plan – Progress Choice |
| Baroda BNP Paribas MULTI CAP FUND – Direct Plan – Progress Choice |
Flexicap Funds
| Franklin India Flexi Cap Fund – Direct – Progress |
| HDFC Flexi Cap Fund – Progress Choice – Direct Plan |
| HSBC Flexi Cap Fund – Progress Direct |
| Taurus Flexi Cap Fund – Direct Plan – Progress |
| Union Flexi Cap Fund – Direct Plan – Progress Choice |
| LIC MF Flexi Cap Fund-Direct Plan-Progress |
| L&T Flexicap Fund-Direct Plan-Progress |
| IDBI FLEXI CAP FUND Progress Direct |
| Motilal Oswal Flexi cap Fund Direct Plan-Progress Choice |
Sectoral or Thematic funds
| Franklin India Alternatives Fund – Direct – Progress |
| HDFC Infrastructure Fund – Progress Choice – Direct Plan |
| ICICI Prudential Infrastructure Fund – Direct Plan -Progress |
| IDFC Infrastructure Fund-Direct Plan-Progress |
| Invesco India PSU Fairness Fund – Direct Plan – Progress |
| Nippon India Banking & Monetary Companies Fund – Direct Plan Progress Plan – Progress Choice |
| Nippon India Energy & Infra Fund – Direct Plan Progress Plan – Progress Choice |
| Nippon India Quant Fund – Direct Plan Progress Plan – Progress Choice |
| UTI – MNC Fund – Progress Choice – Direct |
| UTI India Shopper Fund – Direct Plan – Progress Choice |
| UTI Infrastructure Fund-Progress Choice- Direct |
| UTI-Transpotation and LogisticsFund-Progress Choice- Direct |
| Aditya Birla Solar Life Infrastructure Fund – Progress – Direct Plan |
| Aditya Birla Solar Life MNC Fund – Progress – Direct Plan |
| Baroda BNP Paribas Banking and Monetary Companies Fund – Direct – Progress Choice |
| SBI PSU Fund – DIRECT PLAN – GROWTH |
| LIC MF Infrastructure Fund-Direct Plan-Progress |
| HSBC Infrastructure Fairness Fund – Progress Direct |
| Sundaram Infrastructure Benefit Fund Direct Plan – Progress |
| L&T Enterprise Cycles Fund – Direct Plan – Progress |
| Kotak Infrastructure & Financial Reform Fund- Direct Plan- Progress Choice |
| Aditya Birla Solar Life Manufacturing Fairness Fund – Direct Plan – Progress |
| LIC MF Banking and Monetary Companies Fund-Direct Plan-Progress |
| HDFC Housing Alternatives Fund- Progress Choice – Direct Plan |
Sectoral/ Thematic (worldwide)
| Franklin Asian Fairness Fund – Direct – Progress |
| Aditya Birla Solar Life Commodity Equities Fund – World Agri Plan – Progress – Direct Plan |
| Aditya Birla Solar Life Worldwide Fairness Fund – Plan A – Progress – Direct Plan |
| Aditya Birla Solar Life Worldwide Fairness Fund – Plan B – Progress – Direct Plan |
| Nippon India Japan Fairness Fund- Direct Plan- Progress Plan- Progress Choice |
Small Cap Funds
| Franklin India Smaller Corporations Fund – Direct – Progress |
| Sundaram Small Cap Fund – Direct Plan – Progress Choice |
| Aditya Birla Solar Life Small Cap Fund – Progress – Direct Plan |
| HSBC Small Cap Fairness Fund – Progress Direct |
| ICICI Prudential Smallcap Fund – Direct Plan – Progress |
| Union Small Cap Fund – Direct Plan – Progress Choice |
Worth funds
| Aditya Birla Solar Life Pure Worth Fund – Progress – Direct Plan |
| UTI Worth Alternatives Fund- Direct Plan – Progress Choice |
| Indiabulls Worth Fund – Direct Plan – Progress Choice |
To reiterate: Traders holding these funds needn’t exit them in a rush. Please use this as an indication to dig deeper and re-evaluate these funds. A fund absent from this checklist doesn’t imply it’s a “good fund” or an outperformer!
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