Equity Mutual Funds Record Double-Digit Losses in 2025

Equity mutual funds faced notable pressure in 2025, with at least twelve schemes reporting year to date losses exceeding ten percent. Small-cap and tax saving funds were among the weakest performers as valuation corrections, uneven earnings recovery, and market volatility weighed on returns. The trend highlights rising investor caution and reinforces the importance of diversification and disciplined risk management heading into 2026.

Net investments into equity mutual funds declined 8.8% month-on-month in October, according to industry data. Meanwhile, regulators approved changes to mutual fund fee structures aimed at improving transparency, while deferring select proposals. The central bank also announced a special liquidity facility to support fund houses amid changing market conditions.