MF Update: Underperformers of the last three months

After a huge run up in the last couple of years, the Indian markets are now in correction mode post the Union Budget 2018-19. This correction has led many stocks to give negative return year till date and have eaten into the returns of the investors.

In the mutual fund space, almost all the mutual funds have given negative returns in the last three months. Even the funds that have survived and outperformed their respective category have fallen drastically. Specifically, among the mid-cap and small cap funds, which have invested in this space during the last year, the steep correction has impacted more due to their higher valuations.

To analyse the impact of this drastic fall in markets we have analysed all the mutual fund schemes from large-cap, small-cap and mid-cap category and the returns of the same for the last three months.

According to our data analysis, the below mentioned schemes have been impacted the most in the last three months.

In the past three months, on an average equity large-cap, equity small-cap and equity mid-cap category have given an negative return of 4.12, 7.03, and 6.93 per cent, respectively. This has clearly given an indication that the returns from the mid-cap and small-cap categories won't be identical to the last couple of years, so investors should make their investment decision rationally along with thorough research and keep their return expectation moderate.