Brief Summary
This video identifies the worst-performing mutual funds across five categories (large cap, mid cap, small cap, flexi cap, and large & mid cap) based on their past 5-10 year performance, alpha, and beta. The analysis aims to help viewers identify underperforming investments and consider switching to better options. The video also touches on the importance of a reliable trading platform for F&O traders, recommending 5paisa for its dedicated tools and margin benefits.
- Identifies worst-performing mutual funds in key categories.
- Uses performance, alpha, and beta as key metrics.
- Recommends switching from consistently underperforming funds.
Intro
The video aims to identify the 10 worst-performing mutual funds from a pool of 50 across various categories. It will explain how to identify a bad mutual fund based on performance, risk-adjusted returns (alpha), and risk level (beta). The analysis focuses on five categories: large cap, mid cap, small cap, large & mid cap, and flexi cap, acknowledging that other categories exist but are excluded for brevity.
Criteria for Identifying Worst Performing Mutual Funds
A mutual fund is considered a poor performer if it consistently shows poor performance over the last 5-10 years compared to its peers and benchmark. Key indicators include low alpha (risk-adjusted returns) and high beta (risk relative to returns). Additional factors like AUM, exit load, and expense ratio are considered less important than consistent underperformance.
Large Cap Mutual Funds
The video identifies 10 large-cap mutual funds with poor 5-year and 10-year performance. The analysis focuses on CAGR (Compound Annual Growth Rate) over 5 and 10 years, alpha, and beta. LIC Mutual Fund Large Cap Fund and Taurus Large Cap Fund are identified as the worst performers due to low CAGR, low alpha, and high beta. The video suggests switching out of these funds.
Mid Cap Mutual Funds
Ten mid-cap mutual funds are analyzed based on 5-year and 10-year CAGR, alpha, and beta. Taurus Mid Cap Fund and Aditya Birla Sunlife Midcap Fund are identified as the worst performers. A comparison between DSP MidC Fund and Aditya Birla Sunlife Midcap Fund leads to the conclusion that Aditya Birla Sunlife Midcap Fund is the weaker performer due to lower returns and alpha, and higher beta.
5Paisa Advertisement
The video promotes 5paisa as a trading platform for F&O traders, highlighting its FNO 360 platform with tools like Stratus Builder, Option Chain with GRCX, and OI Analysis. It also mentions the ability to pledge mutual funds or ETFs for margin and zero commission on mutual funds and ETS investments.
Small Cap Mutual Funds
Ten small-cap mutual funds are evaluated, and due to close competition, additional mutual funds are marked. Union Small Cap Mutual Fund and Aditya Birla Sunlife Small Cap Fund are identified as the worst performers. Union Small Cap Mutual Fund is deemed weaker due to its negative alpha.
Flexi Cap Mutual Funds
Among ten Flexi Cap Mutual Funds, Taurus Flexi Cap Fund and LIC Mutual Fund Flexi Cap Fund are identified as the worst-performing based on their data over the last 10 years.
Large and Mid Cap Mutual Funds
From a list of ten Large and Mid Cap Mutual Funds, Aditya Birla Sunlife Equity Advantage Fund and Bank of India Large & Mid Cap Equity Fund are highlighted as the worst performers. The analysis notes that some funds lack 10-year CAGR data but are assessed based on alpha and beta, suggesting they might offer better future returns compared to others on the list.
