Equity mutual funds experienced a challenging week, with losses exceeding 7% according to data released on . The downturn was particularly pronounced within the technology sector, which accounted for the majority of the largest losses.
Broad Market Weakness
The sell-off impacted a significant portion of the equity fund universe. An analysis of 600 funds revealed that 537 delivered negative returns between and , with only 62 generating positive returns. One fund remained flat during the period. This widespread weakness suggests a broader market correction rather than isolated incidents affecting specific funds.
Technology Sector Leads Declines
The technology sector bore the brunt of the losses, with the top 12 underperforming funds all originating from this area. Weekly losses within this group ranged from 4.49% to 7.33%. This concentration of losses within a single sector points to specific pressures impacting technology companies, potentially related to investor sentiment, earnings expectations, or broader macroeconomic factors. A separate report from November 9, 2025, indicated that international funds were experiencing significant losses, with some down as much as 9%.
Fund-Specific Performance
Several funds experienced particularly steep declines. Motilal Oswal Midcap Fund Direct-Growth, while not among the very worst performers last week, has been highlighted as a featured fund. Quant PSU Fund, a scheme focused on public sector undertakings (PSUs), saw a negative return of around 3.95% during the period. Motilal Oswal Business Cycle Fund and Motilal Oswal Multi Cap Fund also posted negative returns, at approximately 3.91% and 3.24% respectively.
Looking back to the week of November 9, 2025, Invesco India – Invesco Global Consumer Trends FoF was a top performer, delivering a return of around 9.07%. However, several international funds struggled, including Edelweiss US Technology Equity FOF (6.70% return) and Mirae Asset Global X Artificial Intelligence & Technology ETF FoF (5.49% return). Funds with a specific focus on US equities, such as Bandhan US Specific Equity Active FOF, Kotak US Specific Equity Passive FOF, Aditya Birla SL US Equity Passive FOF, and Axis US Specific Equity Passive FOF, experienced losses ranging from 4.87% to 5.04% during that week.
Broader Market Context
The recent equity fund performance coincides with broader market trends. On , the Dow Jones Industrial Average tumbled nearly 600 points, and the S&P 500 entered negative territory for 2026. This downturn is attributed to a rout in the technology sector. In the week prior to , global indices showed mixed performance. Nasdaq experienced the largest decline, falling around 3.48%, followed by DAX (-2.33%) and S&P 500 (-1.79%). The Nifty50 and BSE Sensex lost 1.05% and 0.90% respectively, while Dow Jones decreased by 0.73%. Hang Seng was the only major index to gain ground, rising 0.31%.
Impact and Outlook
The losses in equity mutual funds reflect the increased volatility in global markets and the sensitivity of technology stocks to macroeconomic conditions. Investors should be aware of the potential for continued fluctuations and consider their risk tolerance accordingly. The concentration of losses within the technology sector suggests that sector-specific factors are at play, and investors with significant exposure to technology may want to review their portfolios. The performance of international funds highlights the risks associated with investing in foreign markets, particularly during periods of global economic uncertainty.
The data from both and November 9, 2025, indicates a period of increased market sensitivity. While Hang Seng showed positive performance in the recent period, the overall trend suggests a cautious outlook for equity investments. Investors should carefully consider their investment strategies and consult with financial advisors to navigate the current market environment.
The Yahoo Finance list of top losing mutual funds, updated as of today, , shows Neuberger U.S. Equity Impact C experiencing a significant decline of -28.48%. Other funds listed among the top losers include ALPS Series Trust funds and various Astor Sector Allocation funds, all showing negative returns.
