Equity Funds Face Steep Decline: International Schemes Hit Hardest

In a whirlwind week, equity mutual funds faced a sharp fall of over 7%, leaving many investors on the edge. A key highlight of this drop was the predominant impact on international schemes, emerging as leaders in the losers’ chart.

The Weekly Downturn

During the week spanning November 17–21, a significant analysis found that out of 583 funds, an overwhelming 554 recorded negative returns, while a scant 25 posted gains and four remained flat. According to The Economic Times, this trend signals a broader turbulence in global financial markets, making it a noteworthy event in the investment space.

Mirae Asset’s Tough Week

Mirae Asset’s offerings like the Hang Seng TECH ETF FoF and Global Electric & Autonomous Vehicles Equity Passive FoF experienced severe declines of 7.13% and 6.51% respectively, marking them as top contenders on the list of underperformers.

Invesco and DSP Mutual Fund Struggles

Another notable loser was the Invesco Global Consumer Trends FoF, which recorded a drop of 5.27%. Similarly, DSP Mutual Fund saw three of its funds, namely the Global Clean Energy Overseas Equity Omni FoF, World Mining Overseas Equity Omni FoF, and US Specific Equity Omni FoF, decrease by 4.65%, 4.22%, and 4.05%, respectively—highlighting a widespread strain across different sectors.

Kotak and Mirae Face Headwinds

Kotak Global Emerging Market Overseas Equity Omni FoF did not escape the turmoil, posting a negative return of 3.96%. Comparatively, the Mirae Asset S&P 500 Top 50 ETF FoF mirrored this trend with a 3.94% loss, further proving the susceptibility of these international schemes to shifting market conditions.

Other Notable Declines

Rounding up the list were HSBC Brazil Fund and Axis Greater China Equity FoF, with respective falls of 3.93% and 3.87%—illustrating a pervasive downturn across global markets.

As this financial roller coaster continues, investors remain watchful, anticipating strategies to navigate the unpredictable tides of varying economic landscapes. The recent downturn has provided a stark reminder of the volatility inherent in equity investments, especially those with international exposure.