Mutual Funds That Can Lead to Losses – What Every Investor Should Know Before Investing!

 

How to measure risk involved in Mutual Fund

 

Equity Mutual Funds That Have Caused Losses to Investors in the Last One Year


Whether it is for short-term savings or long-term wealth creation, mutual fund investment serves a variety of needs. As the stock market has seen good growth in the last five years, mutual funds have also been giving good returns. Due to this, the idea that investing in mutual funds will only bring profits has become widespread. However, data shows that there is a possibility of losses in mutual funds too.


A study conducted by ETMutualFunds has revealed that about 61% of equity mutual funds have given losses in the last one year. In particular, those who made lumpsum investments have suffered losses. In this study, 272 equity mutual funds were taken. Out of which, only 167 funds have given profits. Not a single fund has made either profit or loss. On the other hand, about 17 funds have lost more than 10%.


Mutual funds that have lost:

Samco Flexi Cap Fund has caused the highest loss. This fund has faced a decline of 17.48% in the last one year. For example, if you had invested Rs 1 lakh in this fund a year ago, its value would now be Rs 82,520.


Next, Quant Multi Cap Fund has faced a decline of 15.31%. If you had invested Rs 1 lakh in this fund a year ago, you would now have only Rs 84,694 left.


Let's take a look at other funds that made losses...

NJ Flexi Cap Fund: -14.24%


Quant Mid Cap Fund: -14.07%


Quant Large & Mid Cap Fund: -13.07%


Quant Value Fund: -12.52%


Quant ELSS Tax Saver Fund: -12.42%


Quant Flexi Cap Fund: -12.38%


Quant Focused Fund: -10.46%


Motilal Oswal Focused Fund: -10.10%


JM Large Cap Fund: -9.41%


Quant Small Cap Fund: -7.91%


Mahindra Manulife Small Cap Fund: -6.35%


HSBC Small Cap Fund: -6.32%


LIC MF Small Cap Fund: -6.17%


LIC MF Value Fund: -6.09%


LIC MF Flexi Cap Fund: -6.03%


Nippon India Small Cap Fund: -5.81%


SBI Contra Fund: -3.15%


SBI Flexicap Fund: -3.05%


What should mutual fund investors understand?

Equity investment is a long-term investment. The funds mentioned above may return to profit after the stock market rises. However, mutual funds should not be treated like a bank savings account. Equity mutual funds should not be saved for immediate needs or needs that will come in a few months. Instead, you can save money in liquid funds and arbitrage funds. You can also save money for immediate needs in these funds.


Experts say that it is better for those who invest in equity funds to invest for at least 5 years. Especially, those who have invested a large amount in lump sum form will get profit only if they wait for a few years.


In September 2024, the Indian stock market touched an unprecedented high. The market that fell after that has not yet reached its old peak. It is during this period that some mutual funds have made losses.


If you invest through SIP, such downturns can be considered a blessing. Because, when the stock market falls and mutual funds fall, you can buy more mutual fund units with a small amount. When the stock market rises in the future, the profits will increase significantly.


You should not put short-term savings in equity mutual funds just because of the huge profits given by the stock market in the last few years. If you experience losses like the funds seen above, you will be trapped. Understanding this, you can make short-term savings in liquid funds and arbitrage funds. Long-term savings can be invested in other equity mutual funds.

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