A Sep-2026 snapshot shows five equity-oriented mutual funds with negative 3-year annualised returns. Three are Nifty IT index funds; the others are an FMCG fund and a flexi-cap fund. Context and longer-term figures matter.
Three Nifty IT index funds—Axis, Bandhan and ICICI Prudential—posted nearly identical 3-year losses (-2.6% to -2.8%), pointing to sector-level weakness rather than fund-specific failings.
ICICI Prudential FMCG Fund had the largest 3-year decline (-3.6%) but positive 5-year (4.5%) and 10-year (8.9%) annualised returns, showing the three-year window is a limited view.
Compare multiple timeframes and examine whether losses track a benchmark or reflect stock-selection and allocation before deciding on action.
# Snapshot
# The funds and their 3‑year performance
These figures are annualised CAGRs for the Direct Plan as of 20‑Sep‑2026.
# What the pattern indicates Three nearly identical negative returns among Nifty IT index funds shows the performance is tied to the underlying IT sector and the benchmark they track. When multiple index funds that follow the same index move closely, it signals index-level performance rather than manager skill differences.
# Practical takeaways for investors Evaluate multiple timeframes. A single rolling period can be unrepresentative. Use 3‑, 5‑ and 10‑year figures together to judge persistence.
Check whether losses align with a benchmark. If an index‑tracking fund is down similarly to its index peers, the driver is likely sector or index performance, not active management.
For sector funds, expect higher concentration risk. Sector funds can experience longer weak stretches when industry fundamentals or sentiment change.
Flexibility is not immunity. A flexi‑cap fund can still show negative returns depending on valuation cycles and allocation decisions.
# What to consider next If you hold one of these funds, compare the fund's returns with the relevant benchmark and with peer funds in the same category over the same timeframes. Revisit your investment horizon and the role each fund plays in your portfolio: tactical exposure, sector bet, or core holding. Changes should be driven by discrepancies between your plan and the fund's observed behavior, not by a single short‑term period of underperformance.
# Bottom line Five equity funds showed negative 3‑year annualised returns as of Sep‑2026. The most telling signal is that three are Nifty IT index funds with nearly identical results, pointing to sector-level performance. The FMCG and flexi‑cap cases show that short windows can look misleading against longer-term histories. Use multiple timeframes and benchmark comparisons before making allocation changes.
The post 22 Equity Mutual Funds That Lost 10% to 24% in 1 Year – Sep 2026 Update appeared first on Myinvestmentideas .
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