Portfolio Check: 14 Equity Funds Down 5%+ in Nine Months

Portfolio Check: 14 Equity Funds Down 5%+ in Nine Months

What happened?

A recent analysis by ET Mutual Funds looked at 275 diversified equity schemes (excluding sectoral/thematic funds) and found that 14 of them slipped over 5% in the past nine months as of July 22, 2025.

That’s roughly 5% of the cohort, signaling that even broadly diversified equity funds aren't immune to near-term losses.

Notably, the hardest hit were flexi-cap funds:

• Samco Flexi Cap Fund: –12.6%

• Shriram Flexi Cap Fund: –10.0% 

Is this a wider trend?

This dip aligns with a broader equity market cooldown earlier in 2025, including significant corrections across indices. In June, ET Mutual Funds also flagged 30 funds down over 10% from their 52-week highs, reinforcing the message that recent market pressure has weighed on many active funds.

What it means for investors

• Don't panic—but review: A 5–10% decline isn't unusual during market volatility (reminder: a bear market is a drop ≥ 20%).

• Reassess fund goals: Check if your investment horizon and risk appetite still align with the fund’s strategy and recent performance.

• Performance is relative: While some schemes dipped, many others stayed flat or delivered modest gains—it's not a blanket underperformance.

• Diversification pays off: Ensure you're not overly invested in underperforming categories like flexi-cap. Consider balancing with multi-cap, large-cap, or even bond-oriented hybrid funds for stability.

 A six-point investor action plan

Step	Action
1	Identifyif you're invested in any of the underperforming 14 funds.
2	Check performance over 1‑, 3‑, and 5‑year periods to spot trends.
3	Compare with benchmarks and peer funds—are the losses structural or market‑wide?
4	Consult your fund manager or advisor: Are there portfolio or strategy changes underway?
5	Stay invested if your goals remain long-term, but be ready to rebalance if needed.
6	Consider SIPs: They help average cost during dips and empower disciplined investing.

Bottom line

Yes—some diversified equity funds have fallen over 5% across nine months, largely due to broader market dynamics. But for long-term investors, periodic dips shouldn’t derail your plan. The key is to stay informed, review fund suitability, and align with your risk-return horizon.