According to ACE MF data, 34 out of 221 equity mutual fund schemes recorded negative one-year returns across large-cap, mid-cap, small-cap, flexi-cap, multi-cap and large-and-mid-cap categories. The schemes with the steepest declines included Samco Large Cap Fund at -7.42%, Samco Large & Mid Cap Fund at -5.98%, and NJ Flexi Cap Fund at -5.83%. Samco Flexi Cap Fund fell 4.05%, while Mahindra Manulife Large Cap Fund and LIC MF Large Cap Fund declined 3.69% and 3.68% respectively. However, as reported by ACE MF, these losses do not tell the complete story when viewed over longer time horizons.
The five-year performance data presents a significantly different picture for several underperforming schemes. Motilal Oswal Mid Cap Fund delivered the highest five-year return at 21.12%, followed by HDFC Small Cap Fund at 14.60% and Tata Small Cap Fund at 14.25%. Nippon India Large Cap Fund returned 12.81%, while Franklin India Flexi Cap Fund generated 11.76% over the five-year period. Notably, several schemes that recorded negative one-year returns, including Mahindra Manulife Large Cap Fund and LIC MF Large Cap Fund, delivered positive five-year returns. As reported by ACE MF, these longer-term returns demonstrate the importance of maintaining a long-term investment perspective during volatile market periods.
The six-month performance data shows a more stable market environment, with only nine schemes recording negative returns out of the 221 reviewed. Mahindra Manulife Large Cap Fund posted the biggest six-month decline at -2.03%, followed by Samco Large & Mid Cap Fund at -1.90%, Samco Large Cap Fund at -1.88%, and DSP Large Cap Fund at -1.86%. ICICI Prudential Large Cap Fund declined -1.06%, while Parag Parikh Flexi Cap Fund fell -0.86%. The remaining schemes showed smaller declines, with Sundaram Flexi Cap Fund, Kotak Large Cap Fund, and HSBC Large Cap Fund seeing declines of -0.23%, -0.13%, and -0.09% respectively, as reported by ACE MF.
According to the latest AMFI data released on August 11, large-cap mutual funds witnessed sharp outflows of ₹1,321 crore as investors shifted to mid- and small-cap funds in the equity category during July 2026. This trend reflects the current market sentiment where investors are seeking opportunities in smaller market segments. The data underscores the cyclical nature of investor preferences and the ongoing rotation from large-cap to mid- and small-cap funds, as reported by ACE MF.
Financial experts emphasize that negative one-year returns should not prompt immediate panic among investors. Shweta Shastri, CFP and founder at Finnora wealth studio, noted that markets go through ups and downs but have historically recovered from periods of weakness. She highlighted that market volatility can provide opportunities to accumulate units at lower prices, with the key being to stay focused on financial goals rather than short-term movements. The expert referenced Warren Buffett's experience during the 2008 global financial crisis, when Berkshire Hathaway's value fell by 9.6%, but Buffett stayed invested and continued focusing on the long term. As reported by ACE MF, experts recommend maintaining patience, discipline, and a long-term perspective to turn market volatility into opportunities for long-term wealth creation.
