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SEBI report: mutual fund negative return schemes triple
The SEBI annual report for 2025-26 shows a sharp decline in mutual fund performance, with the number of schemes delivering negative annual returns nearly tripling to 731 from 243 in the previous…
The Story in Brief
The SEBI annual report for 2025-26 shows a sharp decline in mutual fund performance, with the number of schemes delivering negative annual returns nearly tripling to 731 from 243 in the previous year. Schemes in the -5% to 0% range alone rose from 172 to 492, while those with losses over 10% jumped from 30 to 93.
At the same time, only 198 schemes generated returns above 10%, down from 304 in FY25. The number of schemes with returns between 5% and 10% also fell sharply to 539 from 852. Despite weak returns, the investor base expanded 13.2% to 6.1 crore unique investors.
The Indian Opinion
The tripling of negative-return funds sounds scary, but three-fourths of all schemes still posted positive returns, albeit modest. The real story is the vanishing of high-return funds, not a collapse of the industry. Investors should resist panic redemption and instead check if their fund's underperformance is temporary or structural. Watch the next quarter's equity market movement, it will decide whether the recent volatility was a blip or a lasting trend.
Source: livemint.com
This story was synthesised by AI from the source linked above.
