10 Worst Performing Mutual Funds of the Last Decade (2015–2025)
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🚨 10 Worst Performing Mutual Funds (2015–2025)
The Indian mutual fund industry has seen explosive growth over the last decade, but not all funds have delivered value to investors. Here’s a data-backed rundown of the poorest performers from 2015 to 2025 — a cautionary tale for every investor.
📉 Why This Matters
While the Nifty 50 delivered an average CAGR of ~12.7%, these funds severely underperformed due to poor sector choices, high expense ratios, or misaligned global exposures. Reviewing such underperformers helps us avoid future traps.
🔍 Methodology
- Only equity-oriented mutual funds considered (excl. ETFs)
- Direct plans taken for performance consistency
- 10-year CAGR from 2015–2025 considered
- Focus on international, thematic, and niche category funds
💔 The 10 Worst Mutual Funds (Ranked by 10Y CAGR)
| Rank | Fund Name | 10Y CAGR | Category | Primary Cause |
|---|---|---|---|---|
| 1 | HSBC Brazil Fund | 0.72% | International | Geopolitical & economic weakness in Brazil |
| 2 | DSP Global Clean Energy FoF | 2.05% | Thematic | Volatile ESG narratives, underperforming sector |
| 3 | Franklin Templeton European Opportunities | 2.47% | International | Eurozone stagnation, weak alpha |
| 4 | PGIM Emerging Markets Equity | 2.77% | International | Underperforming EM regions, low consistency |
| 5 | Edelweiss EM Offshore | 4.75% | International | Expensive structure, poor returns |
| 6 | Kotak Global EM Fund | 4.75% | International | Lack of alpha generation |
| 7 | HSBC Global EM Fund | 5.38% | International | High volatility, poor allocation |
| 8 | Franklin Asian Equity | 6.00% | International | Overdiversified without performance |
| 9 | Invesco Pan European Equity FoF | 6.16% | International | Low growth exposure |
| 10 | Edelweiss ASEAN Equity Offshore | 6.20% | International | Narrow regional focus |
🔍 Insights & Patterns
- 🗺️ Global funds dominate: Most underperformers were international FoFs, proving that foreign exposure ≠ higher returns.
- 💸 Expense drag: Many of these funds had relatively high expense ratios and weaker fund management.
- 🏦 Missed macros: Geopolitical and macroeconomic cycles played a major role in decade-long stagnation.
✅ Takeaway for Investors
Diversification is key — but not blind diversification. Evaluate sector exposure, management track record, and alignment with your goals. Avoid “trending” global funds unless supported by data and conviction.
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Disclaimer: This article is for educational purposes only. Please consult a SEBI-registered advisor before making investment decisions.
Written by Brig Tech Labs