10 WORST Performing Mutual Funds in the Last 10 years (0.72% to 6.2% Cagr Returns)

Over the past decade, the Indian stock market has seen a remarkable rally. From 12-May-2015 to 11-May-2025, The Nifty 50 Index has delivered a 10-yar cagr of approximately 12.7%. DURING this period, many well-managed active equity mutual funds have generated double-directed double-digit annualized returns, outperforming the Benchmark. However, not all mutual funds have lived up to expectations. A Surprising Number of Equity Funds – Compecially that focused on International, Sectoral, or Themetic Themes -Have Significantly underperformed. In Fact, some have returned as low as 0.72% Cagr Over the last 10 years, turning a ₹ 1 Lakh Investment INTO JUST AROUND ₹ 1.07 Lakhs. In this article, we will discuss the 10 WORST Performing Mutual Funds in the Last 10 Years (12-May-2015 to 11-May-2025).

How we filtered these West performing Mutual Funds?

• We Considered All Equity Mutual Funds, Including Sectoral and Thematic Funds and Global Funds.
• We excluded etfs from this list.
• We filtered the bottom 10 funds based on their 10-Year Cagr Returns.
• These 10 funds generated 0.7% to 6.2% annualized returns in the last 10 years.

We could observe that some of these are part of our earlier article 10 WORST Performing Mutual Funds in Last 5 Years,

List of 10 Worst performing mutual funds in the last 10 years

Here are the 10 Worst-performing mutual funds based on their 10-year annualized returns:

10 WORST Performing Mutual Funds in the Last 10 years – Deep Dive

Let’s Explore these funds in detail, their objectives, performance, and our view.

#1-HSBC Brazil Fund-10-Year Cagr Return: 0.72%

Investment Objective: To provide long-term capital growth by investment in brazil-focused equities.

Annualized returns:

• 1 year: -2.8%
• 3 year: 4.6%
• 5 year: 8.3%
• 10 Year: 0.7% (₹ 1 Lakh Delhi Have Turned to 1.07 Lakhs)

Expense ratio: 0.93% (Direct Plan)

Beta: 0.44 indicating low valatiity.

Alpha: -4.27 Indicating Poor Risk-Edjusted Performance.

Our view: The HSBC Brazil Fund has underperformed in the long-term, with a 10-yar return of just 0.72%, and recent returns also remain in negative territory. The investment of ₹ 1 Lakh Since Inception would have made this fund value as ₹ 70,685 (Negative Cagr Return of -2% Since Inception). Despite Brazil’s Potential as an emerging market, Poor Risk-Edjusted Performance Make This Fund a High-Risk option. Given the Ongoing Macroeconomic and Political Challenges in Brazil, Investors may be better avoiding As Always, It’s Wise to Stick to a Disciplined Asset Allocation Strategy and Consider allocating only a small portion of the portfolio to interactive funds with a consistant tract records.

#2-DSP Global Clean Energy Fund of Fund-10-Year Cagr Return: 2.05%

Investment Objective: To provide long-term capital growth by investment predominantly in Global Companies Engaged in the Clean and Renewable Energy Sector, Through Overseas Mutual Funds OR ETFS.

Annualized returns:

• 1 year: -6.5%
• 3 year: 5.3%
• 5 year: 9.7%
• 10 Year: 2.05% (₹ 1 Lakh would have turned to 1.22 lakhs)

Expense ratio: 1.54% (Direct Plan)

Beta: 0.58 indicating low valatiity.

Alpha: -6.43 Indicating Poor Risk-Edjusted Performance.

Our view: The DSP Global Clean Energy Fund of Fund has significantly underperformed over the long term, with a modest 10-yar cagr of 2.05%, translating to just just ₹ 1.22 Lakhs on a ₹ 1 Lakh Investment. With a low beta of 0.58, the fund is less Volayal, but that hasn’t translated into better returns. Check out 20 Mutual Fund Schemes with low beta and high alpha,

While The Clean Energy Sector Holds Long-Term Promise, Especially as the World Transitions to Renewables, The Fund’s Historical Performance Suggessts It ‘ Capturing that growth. Investors Should Be Cutious and Consider Exposure to Global Clean Energy via more diversified or actively managed strategies with proven track records.

#3-Franklin India Feeder-Templeton European Opportunities Fund-10-Year Cagr Return: 2.4%

Investment Objective: Invests in Franklin European Growth Fund Focusing on European Equites.

Annualized returns:

• 1 year: 8.7%
• 3 year: 9.3%
• 5 year: 8.9%
• 10 Year: 2.4% (₹ 1 Lakh would have turned to 1.27 lakhs)

Expense ratio: 0.52% (Direct Plan)

Beta: 0.28 indicating low valatiity.

Alpha: -0.3 INDICATING POOR RISK-EDJUSTED RETURANS.

Our view: As indicated in our earlier article, tHis Fund’s European Exposure has not Translated Into Strong Returns historically. A Relatively High Expensese Ratio and Marginally Negative Alpha Reduce Its appeal. While Europe has shown signs of recover in certain sector, Investors May Want to Consider Diversified Global Funds or Developed Market Funds with Better Consistency and Lower Costs.

#4-Pgim India Emerging Markets Equity Fund-10-Year Cagr Return: 2.7%

Investment Objective: This fund focuses on Opportunities in Emerging Market Equites Excluding India.

Annualized returns:

• 1 year: 11.3%
• 3 year: 11.0%
• 5 year: 5.1%
• 10 Year: 2.7% (₹ 1 Lakh would have turned to 1.3 lakhs)

Expense ratio: 1.38% (Direct Plan)

Beta: 0.48 indicating low valatiity.

Alpha: -78 Indicating Poor Risk Adjusted Returns.

Our view: While the pgim India emerging markets equity funds to tap into growth across emerging markets (excluding India), its long-term performance has been related to With a 10-yar Cagr of just 2.7% and a 5-year Cagr of 5.1%, The Returns have not lived up to expectations. Despite a relatively low beta indicating lower valatiity, the negative alpha sugges subpar risk-edjusted returns. As highlighted earlier, investors should be cautious about allocating significant portions to underperforming or inconsistent interactive markets. A better approach is to maintain a well-diversified portfolio and consider global funds with strong and stable performance.

#5-Edelweiss Emerging Markets Opportunities Equity Offshore Fund-10-Year Cagr Return: 4.75%

Investment Objective: Invests in JPMORGAN Funds-Emerging Markets Opportunities Fund for long-term capital appreciation.

Annualized returns:

• 1 year: 5.6%
• 3 year: 6.8%
• 5 Year: 5.9%
• 10 Year: 4.75% (₹ 1 Lakh Delhi have turned to 1.49 lakhs)

Expense ratio: 1.46% (Direct Plan)

Beta: 0.56 indicating low valatiity.

Alpha: -5.07 Indicating Poor Performance Relative to Risk.

Our view: This fund’s performance has reminded below par, despite its expenses to divers emerging markets. The combination of a relatively high expenses ratio and weak alpha indicates that the fund has not generated enough risk-weedsted returns to justify its cost. Investors Looking to Diversify Internationally Should Consider Alternative Global Funds with Stronger Historical Performance and More Consistency Alpha.

You can also review 20 Mutual Funds that Delivered Positive Returns Every year in the last 10 years

#6-Kotak Global Emerging Market Fund-10-Year Cagr Return: 4.9%

Investment Objective: To provide long-term capital growth by investment in emerging markets across the globe.

Annualized returns:

• 1 year: 4.1%
• 3 year: 7.3%
• 5 year: 8.9%
• 10 Year: 4.9% (₹ 1 Lakh would have turned to 1.61 lakhs)

Expense ratio: 1.3% (Direct Plan)

Beta: Na

Alpha: Na

Our view: Its 10-Year Cagr Return of 4.9% Remains Low, Reflecting The Overall Volativity and Unpredictability of Emerging Markets. Investors Looking for International Exposure Should Funds on Funds with a Strong Long-TRAM Track Record Across MARKET CYCLES.

#7-HSBC Global Emerging Markets Fund-10-Year Cagr Return: 5.38%

Investment Objective: Invests in emerging markets globally to generate long-term returns.

Annualized returns:

• 1 year: 9.2%
• 3 year: 5.2%
• 5 year: 7.9%
• 10 Year: 5.3% (₹ 1 Lakh would have turned to 1.68 lakhs)

Expense ratio: 0.72% (Direct Plan)

Beta: 0.52 indicating low valatiity.

Alpha: -5.69 Indicating Poor Risk Adjusted Returns.

Our view: This fund stil lags behind many domestic and global peers. The negative alpha sugges the returns haven satifactory when adjusted for risk. Emerging Markets Can Be Volatile, and this Fund’s performance reflects that inconsisten. Investors Should Evaluate Whiter This Fits Within Their Broader Portfolio Strategy.

The Above Fund also part of our earlier article on 10 WORST Performing Mutual Funds in Last 3 Years,

#8-Franklin Asian Equity Fund-10-Year Cagr Return: 6.0%

Investment Objective: Invests in Companies Across Asia (Excluding Japan) for Capital Appreciation.

Annualized returns:

• 1 year: 9.3%
• 3 year: 6.2%
• 5 year: 6.1%
• 10 Year: 6.0% (₹ 1 Lakh Would have Turned to 1.78 Lakhs)

Expense ratio: 1.59% (Direct Plan)

Beta: 0.65 indicating lower valatiity.

Alpha: -6.37 Indicating Poor Returns for the Risk Taken.

Our view: The Franklin Asian Equity Fund Provides Exposure to Asian Markets (Excluding Japan), but its medium to long-term performance has been below average. Its 1-Year Returns, The 5-Year and 10-Year Cagrs Remain Low Between at 6% and 9%. A Beta of 0.65 sugges lower valatiity, but the significant negative alpha (-6.37) indicates poor compensation for the risk taken. Given the inconsistent performance of many asian markets and the fund’s inability to generate strong risk-edjusted returns, investors should May review and Invest in Funds.

#9-Invesco India-Invesco Pan European Equity Fof-10-Year Cagr Return: 6.16%

Investment Objective: Invests in Companies Across Asia (Excluding Japan) for Capital Appreciation.

Annualized returns:

• 1 year: 5.6%
• 3 year: 13.7%
• 5 year: 15.9%
• 10 year: 6.16% (₹ 1 Lakh would have turned to 1.81 lakhs)

Expense ratio: 0.58% (Direct Plan)

Beta: 0.63 Indicating Lower Volativity.

Alpha: 2.54 Indicating Poor Returns for the Risk Taken Compared to Category Average (as per Moneycontrol Website).

Our view: Its short term and long term performance is beLow par while 5 year Cagr Returns are 15.9% which is impressive. Investors can review and take a call about such mutual funds.

#10-Edelweiss Asean Equity Off-Shore Fund-10-Year Cagr Return: 6.2%

Investment Objective: Invests in Companies Across Asia (Excluding Japan) for Capital Appreciation.

Annualized returns:

• 1 year: 17.1%
• 3 year: 7.4%
• 5 year: 11.3%
• 10 Year: 6.2% (₹ 1 Lakh would have turned to 1.82 lakhs)

Expense ratio: 0.58% (Direct Plan)

Beta: 0.36 Indicating Lower Volativity.

Alpha: -2.7 Indicating Poor Returns for the Risk Taken.

Our view: Its Medium Term and Long Term Performance is Below Par While 1 Year Returns are 17.1% which is good. Investors can review and take a call about such mutual funds.

Final Thoughts

You might be wondering what to do if you have investment in any of these funds. First Review White Funds Align to your Financial Goals, RISK Appetite and Tenure of Investment. Then check for short to medium to long term performance along with stock market performance under which these funds are investment and take an investment, continue or exit decision.

Suresh kp is a seasoned financial expert with over 20 years of experience. He is nism Certified Investment Adviser and Research Analyst. For more about his Expertise and Certifications, Visit About Suresh Kp

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