Investors often focus on that have delivered high returns over a particular period. However, it is equally important to understand which funds have struggled.
Here are the top 10 diversified (excluding sectoral and thematic funds) that delivered the most negative returns on a year-to-date (YTD), three-year, and five-year basis as of October 2026. Let’s see whether any fund names feature across all these periods.
Which equity funds are in red by YTD returns?
As of 7 October 2026, several diversified equity funds were in negative territory on a year-to-date (YTD) basis. The list includes the top 10 funds across value and large-cap categories, with the weakest performers down by more than 10%.
| S.No. | Diversified equity funds | YTD return |
| 1 | ICICI Prudential Value Fund | -12.35% |
| 2 | Quantum Value Fund | -11.95% |
| 3 | Parag Parikh ELSS Tax Saver Fund | -11.78% |
| 4 | Quantum ELSS Tax Saver Fund | -11.70% |
| 5 | Mahindra Manulife Large Cap Fund | -11.61% |
| 6 | Templeton India Value Fund | -11.55% |
| 7 | Sundaram Value Fund | -11.53% |
| 8 | ICICI Prudential Large Cap Fund | -11.09% |
| 9 | DSP Large Cap Fund | -10.61% |
| 10 | UTI Large Cap Fund | -10.55% |
*Source: Morningstar, Direct plans, Returns as on 7 October 2026
The list is led by ICICI Prudential Value Fund, which delivered the most negative return this year at -12.35%. It was followed by Quantum Value Fund at -11.95% and Parag Parikh ELSS Tax Saver Fund at -11.78%.
Quantum ELSS Tax Saver Fund and Mahindra Manulife Large Cap Fund were also among the weakest performers.
The remaining three funds in the top 10 were ICICI Prudential Large Cap Fund at -11.09%, DSP Large Cap Fund at -10.61%, and UTI Large Cap Fund at -10.55%.
Which diversified equity funds delivered negative returns over three years?
The picture looks considerably different when returns are assessed over a three-year period. Based on the funds in this analysis, only one active diversified equity fund remains in negative territory over three years.
| Diversified equity fund | 3-year return | YTD return |
| Samco Flexi Cap Fund | -3.70% | -4.76% |
*Source: Morningstar, Direct plans, CAGR returns as on 7 October 2026
Only this fund has delivered negative returns over the past three years. As of 7 October 2026, it has also posted a negative return of 4.76% so far this year. However, it does not feature among the 10 weakest-performing funds on a YTD basis.
Are any diversified equity funds negative over five years?
The five-year picture is different again. There are no active diversified equity funds in the red over the five-year period.
This highlights why should avoid judging an equity mutual fund solely on its latest YTD performance. A fund can be facing a difficult year while still generating positive returns over a longer investment horizon.
However, a longer positive return should not automatically be treated as proof that a fund will continue to outperform. Investors should also examine consistency, benchmark performance, portfolio concentration, investment style, and risk before making an investment decision.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.