The Worst Mutual Funds – Quantitative

Introduction

Our previous post looked at the 10 best mutual funds based on sharpe ratio, bear-beta, information ratio, draw-down depth and draw-down length between Jan-2010 and May-2015. Here are the 10 worst funds based on the same metrics.

As you can imagine, infrastructure funds performed poorly in this time-frame. We ignore them for now.

Sharpe Ratio

Fund	SHARPE	IRR
Mirae Asset Global Commodity Stocks – Growth Option	0.00	-0.16
JM Basic Fund – Growth Option	0.01	0.23
Escorts Tax Plan-Growth	0.01	0.79
HSBC Progressive Themes Fund – Growth	0.02	1.18
Religare Invesco PSU Equity Fund – Growth	0.02	0.87
JM Multi Strategy Fund – Growth option	0.02	1.56
Sundaram Growth Fund-Growth	0.02	1.37
Religare Invesco AGILE Fund – Growth Option	0.02	1.38
Sahara Star Value Fund-Growth Option	0.02	1.69
Bsl Comm Eq Fund – Global Agri Plan – Growth	0.02	1.56

Bear-Beta

Fund	BETA BEAR	IRR
HSBC Progressive Themes Fund – Growth	1.19	1.18
HSBC Midcap Equity Fund – Growth	1.12	3.11
Sundaram S.M.I.L.E.Fund-Growth	1.05	5.74
JM Basic Fund – Growth Option	1.03	0.23
Sahara Star Value Fund-Growth Option	1.01	1.69
Sahara Midcap Fund-Growth Plan	1.00	4.32
Escorts Leading Sectors Fund – Growth Option	0.97	5.79
DSP BlackRock India T.I.G.E.R. Fund – Regular Plan – Growth	0.96	2.02
JM Multi Strategy Fund – Growth option	0.95	1.56
DSP BlackRock Small and Mid Cap Fund – Regular Plan – Growth	0.93	7.76

Information Ratio

Fund	IR	IRR
JM Basic Fund – Growth Option	-1.14	0.23
Escorts Tax Plan-Growth	-0.81	0.79
Religare Invesco PSU Equity Fund – Growth	-0.75	0.87
Mirae Asset Global Commodity Stocks – Growth Option	-0.75	-0.16
HSBC Progressive Themes Fund – Growth	-0.67	1.18
Sundaram Growth Fund-Growth	-0.62	1.37
Sahara Super 20 Fund – Growth Option	-0.51	1.49
Sahara Growth Fund-Growth	-0.49	1.71
JM Multi Strategy Fund – Growth option	-0.49	1.56
Sundaram Select Focus-Growth	-0.48	1.57

Draw-down Depth

Fund	DRAW DEPTH	IRR
HSBC Progressive Themes Fund – Growth	-54.39	1.18
HSBC Midcap Equity Fund – Growth	-52.28	3.11
JM Basic Fund – Growth Option	-51.83	0.23
Escorts Tax Plan-Growth	-46.87	0.79
Escorts Leading Sectors Fund – Growth Option	-44.69	5.79
JM Multi Strategy Fund – Growth option	-42.41	1.56
Sahara Star Value Fund-Growth Option	-42.38	1.69
Religare Invesco PSU Equity Fund – Growth	-41.63	0.87
Principal Emerging Bluechip Fund – Growth Option	-40.74	8.64
Sundaram S.M.I.L.E.Fund-Growth	-40.61	5.74

Draw-down Length

Fund	DRAW LENGTH	IRR
JM Basic Fund – Growth Option	1092.00	0.23
Escorts Tax Plan-Growth	932.00	0.79
Escorts Leading Sectors Fund – Growth Option	842.00	5.79
JM Multi Strategy Fund – Growth option	840.00	1.56
HSBC Progressive Themes Fund – Growth	838.00	1.18
Religare Invesco PSU Equity Fund – Growth	824.00	0.87
JM Tax Gain Fund – Growth option	822.00	2.42
HSBC Midcap Equity Fund – Growth	820.00	3.11
DSP BlackRock India T.I.G.E.R. Fund – Regular Plan – Growth	808.00	2.02
SBI CONTRA – REGULAR PLAN -GROWTH	807.00	2.06

Past Performance

Fund	BETA	IRR
Mirae Asset Global Commodity Stocks – Growth Option	0.52	-0.16
JM Basic Fund – Growth Option	1.09	0.23
Escorts Tax Plan-Growth	0.82	0.79
Religare Invesco PSU Equity Fund – Growth	0.84	0.87
Taurus Infrastructure Fund -Growth Option	1.01	1.12
HSBC Progressive Themes Fund – Growth	1.18	1.18
Sundaram Growth Fund-Growth	0.85	1.37
Religare Invesco AGILE Fund – Growth Option	0.73	1.38
Sundaram Global Advantage Fund Growth	0.26	1.44
Sahara Super 20 Fund – Growth Option	0.75	1.49

Conclusion

Mutual funds are marketed as wealth builders. However, the truth is that most of them struggle. As you can see from the analysis here, there are quite a few of them with low-single-digit returns over 5-year time-frames. At last count, there were more than 5300 different schemes that you could choose from.

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