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5 Equity Mutual Funds Suffer Over 20% Loss on SIP Investments in a Year: Are You Affected?

Published: March 23, 2026 | Category: Real Estate
5 Equity Mutual Funds Suffer Over 20% Loss on SIP Investments in a Year: Are You Affected?

The Indian equity market has been volatile over the past year, and this volatility has taken a toll on several mutual funds. According to data from Value Research, five equity mutual funds have seen a loss of over 20% on Systematic Investment Plan (SIP) investments made in the last one year. This article delves into the details of these underperforming funds and what it means for investors.

Motilal Oswal Midcap Fund, a mid-cap fund, has been one of the hardest hit. It recorded a negative XIRR (Extended Internal Rate of Return) of 27.81% on SIP investments over the past year. For an investor who started a monthly SIP of Rs 10,000 in this fund, the current value would be Rs 1.02 lakh. This significant loss highlights the risks associated with mid-cap investments, which are generally more volatile compared to large-cap and multi-cap funds.

Invesco India Focused Fund, a focused fund, has also performed poorly. It has a negative XIRR of 25.36% on SIP investments over the last year. A monthly SIP of Rs 10,000 in this fund would now be worth Rs 1.03 lakh. Focused funds typically invest in a smaller number of stocks, which can lead to higher returns but also higher risks. The underperformance of this fund underscores the importance of diversification.

Nippon India Consumption Fund, a consumption theme-based fund, has not fared well either. It has a negative XIRR of 22.74% on SIP investments over the past year. A monthly SIP of Rs 10,000 in this fund would now be worth Rs 1.05 lakh. The consumption sector, which includes companies involved in consumer goods and services, has faced challenges due to economic slowdowns and changing consumer behavior.

Invesco India Flexi Cap Fund, a flexi cap fund, has also seen negative returns. It has a negative XIRR of 21.11% on SIP investments over the last year. A monthly SIP of Rs 10,000 in this fund would now be worth Rs 1.06 lakh. Flexi cap funds are designed to invest across market capitalizations, offering flexibility but also exposure to market volatility.

Mirae Asset Great Consumer Fund, another consumer theme-based fund, has a negative XIRR of 20.10% on SIP investments over the past year. A monthly SIP of Rs 10,000 in this fund would now be worth Rs 1.07 lakh. The consumer sector has faced numerous challenges, including rising input costs and reduced consumer spending, which have affected the performance of these funds.

For investors, the key takeaway is to remain cautious and not to panic. Market downturns are a part of the investment cycle, and it is crucial to stay invested for the long term. Diversification across different asset classes and regular monitoring of portfolio performance can help mitigate risks. Additionally, consulting with a financial advisor can provide valuable insights and guidance during such market conditions.

In conclusion, while these five equity mutual funds have underperformed in the last year, it is important to remember that past performance is not indicative of future results. Investors should remain focused on their long-term goals and make informed decisions based on their risk appetite and investment horizon.

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Frequently Asked Questions

1. What is
Systematic Investment Plan (SIP)? A: A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money in a mutual fund at regular intervals, such as monthly or quarterly. SIPs help investors build a disciplined investment habit and can average out the cost of investments over time.
2. Why did these equity mutual funds perform poorly?
The poor performance of these equity mutual funds can be attributed to various factors, including market volatility, economic slowdowns, and sector-specific challenges. Mid-cap and focused funds, in particular, are more susceptible to market fluctuations.
3. What should I do if I have invested in these underperforming funds?
If you have invested in these underperforming funds, it is advisable to review your investment strategy. Consider diversifying your portfolio and consult with a financial advisor to make informed decisions based on your risk tolerance and investment goals.
4. Can I switch to
better-performing fund? A: Yes, you can switch to a better-performing fund. However, it is important to evaluate the reasons for the underperformance and consider the fund's long-term potential before making any changes. Switching funds may also involve costs such as exit loads and capital gains taxes.
5. How can I mitigate the risk of investment losses?
To mitigate the risk of investment losses, diversify your portfolio across different asset classes and sectors. Regularly review your investments, stay informed about market trends, and consult with a financial advisor to make strategic decisions.