38 passive mutual funds gave negative returns in September, lost up to 4%

Around 38 passive mutual funds offered negative returns in September, with a total of 353 passive mutual funds spread across all asset classes during this period.

The three schemes that lost the most were defense sector-based passive funds: Aditya Birla Sun Life Nifty India Defence Index Fund, Motilal Oswal Nifty India Defence Index Fund, and Motilal Oswal Nifty India Defence ETF, which lost 4.49%, 3.97%, and 3.90%, respectively, in September.



Five schemes in the list were based on the PSU theme and reported negative returns. The Kotak Nifty PSU Bank ETF and Nippon India ETF Nifty PSU Bank BeES posted negative returns of around 3.33% each. The DSP Nifty PSU Bank ETF and ICICI Prudential Nifty PSU Bank ETF lost 3.32% each during the mentioned period, while the HDFC Nifty PSU Bank ETF lost 3.31% in the same timeframe.

The next 15 schemes on the list were from the IT sector, losing between 1% and 2.07%. The Navi Nifty IT Index Fund and ICICI Prudential Nifty IT Index Fund both lost 2.07%. The Axis Nifty IT Index Fund recorded a negative return of approximately 2.05% during the mentioned period.

The Bandhan Nifty IT Index Fund and Nippon India Nifty IT Index Fund each lost 2.03% in the same timeframe. Among these 15 schemes, six schemes lost 1.99%. The Aditya Birla Sun Life Nifty IT ETF reported a negative return of around 1.95% in the said period.

Two schemes from Mirae Asset Mutual Fund—the Mirae Asset Nifty MidSmallcap 400 Momentum Quality 100 ETF FoF and the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF—posted negative returns of 0.94% and 0.78%, respectively, in September.

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The Tata Nifty India Digital ETF FoF lost 0.73% in September, followed by the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF and the Mirae Asset Nifty MidSmallcap 400 Momentum Quality 100 ETF, which lost 0.67% and 0.50%, respectively, in the same period.

The Motilal Oswal BSE Enhanced Value Index Fund and Motilal Oswal BSE Enhanced Value ETF benchmarked against the BSE Enhanced Value Index, reported negative returns of 0.27% and 0.20%, respectively, during the mentioned period.

The DSP Nifty Smallcap 250 Quality 50 Index Fund recorded the lowest loss of around 0.16% in the specified timeframe.

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The top performers in the metal and consumption sector include the ICICI Pru Nifty Metal ETF, which delivered the highest return of around 8.47%. The Kotak NIFTY India Consumption ETF and the ICICI Pru Nifty India Consumption ETF posted returns of 6.18% and 6.17%, respectively, during the same period. The SBI Silver ETF FoF yielded a return of 5.83% in the same timeframe. The Axis Nifty Smallcap 50 Index Fund recorded the lowest positive return of around 0.05% in September.

We considered all passive mutual funds available in the market during this period, including both regular and growth options.

Note, the above exercise is not a recommendation. The exercise was done to find which passive funds offered negative returns in September. One should not make investment or redemption decisions based on the above exercise.

One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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