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0:01 So in today's video we will see 50 different mutual funds. Yes, there are 50 different mutual funds and among these 50 different mutual funds, we will pick out 10 such mutual funds that have given the worst performance in the last 10 years. Today 's video is important for you so that you can know whether you are invested in any of these 50 mutual funds or not or in the worst case, whether you are invested in these 10 different mutual funds or not. Along with this, you will also know when a mutual fund is called a bad mutual fund ? Or when can it be called the worst performing mutual fund? How to identify which mutual fund is good for you? So let's get started quickly. Hello friends, my name is Ranjan and you are watching Your Everyday Guide. Well, look, in this ocean of mutual funds, it is very huge. Picking out the 10 worst performing mutual funds out of these can be a never ending list. Because we don't know in which categories mutual funds are there
0:47 and in each category 50-60 or 80-80 mutual funds are available and even among these, the mutual funds that perform well are less. This means that there are a lot of bad mutual funds. So to make this video useful and meaningful for you, what I have done is that I have removed 10 mutual funds from five different categories which are already giving poor performance. Out of these 10 mutual funds, I will pick out the two worst mutual funds i.e. worst performing mutual funds. And what are these five categories? These are large cap, mid cap, small cap, large & mid cap and flexi cap. I know there are many categories which might have been missed here but I can't do much here because if I start including every category then this video will also become a never ending video. So maybe we may talk about the remaining categories in some video in the future. Ok? So first of all it is important for you to know when can a
1:33 mutual fund be called the worst performing mutual fund? How to identify whether a mutual fund is good for you or not. So broadly we get three things here. The first thing is performance. Now since we are talking about past data. We have past data on the basis of which we are deciding whether a mutual fund is performing well or not. So here we first have to check whether a mutual fund is consistently giving poor performance in the last 5-10 years compared to other mutual funds and compare to its benchmark. The second thing is alpha, that is, how much risk adjusted returns has a mutual fund given compared to its benchmark. The lower the alpha of a mutual fund, i.e. the worse will be the risk adjusted returns of that mutual fund. And the third thing comes to us, beta. That is, how much risk a mutual fund carries in comparison to its returns. That is,
2:18 if a mutual fund is giving poor returns on high risk and is not giving good performance, then the beta of that mutual fund will be very high. So here we have to check which mutual fund has the highest beta. So basically you have to check these three things. Apart from that, what is the AUM of a mutual fund ? What is his exit load? What is its expense ratio? Which AMC's mutual fund is that? We are not concerned with all these things because if a mutual fund is not giving good performance even in 5 or 10 years, then that mutual fund is bad for you. So first of all let us talk about the large cap mutual fund category. So as you can see on my screen. I have listed down 10 different mutual funds here. Basically here are 10 different mutual funds whose 5 year and 10 year performance has been very poor. His cage has gone very bad. And in case you do not see any mutual fund here then it is
3:05 because we will not have the last 5 years and 10 years data of that mutual fund. That is why I have not detailed that mutual fund here. So here the columns that we have, like if we talk about AUM and if we talk about expense ratio, then both these columns are only for your reference. So that you can know what is the AUM of a mutual fund or what is its expense ratio. Basically, whatever we have to talk about here, we have to talk on the basis of these four columns. That is, CAGR 5 years, CAGR 10 years, Alpha and Beta. So first of all you have to see whether you are invested in any of these 10 mutual funds. If you are invested, that means your mutual fund is already giving poor performance. He is not giving a good performance. Now, we will find out from these 10 mutual funds, two such mutual funds whose performance has been the worst, which we can say that they are the two worst performing
3:52 mutual funds in the large cap mutual fund category. Now how will we do this work? I will come here above the five year CAGR and we will select the two mutual funds which have the lowest five year CAGR. Basically we will give them red points. So if I first talk about which has had the lowest CAGR in five years? That is LIC Mutual Fund Large Cap Fund. So 19.05 I will give it a color here. Let me give it a red color here. He has got this. Whose second lowest returns do we see here? That is Torus Large Cap Fund which is 19.37. So I simply print the format and drop it here. After this we come to the 10 year CAGR. So the lowest 10 year CAGR is of these top two mutual funds because I have sorted this list on the basis of 10 year CAGR. So again I will give them this red color here.
4:39 After this we talk about alpha, that is, the lower the alpha of a mutual fund, the worse performing mutual fund it will be for us. So we are seeing the lowest alpha here. First is Aditya Birla Sunlife Front Line Equity Fund which is a large cap fund with its alpha of -1.84. After this, the second one we have is LIC Mutual Fund Large Cap Fund -1.47. After this we talk about beta. This means that the higher the beta of a mutual fund, the more risky that mutual fund will be compared to its returns. So here we are seeing the highest beta of these two mutual funds which are at the top. I give them a red mark again here. So after doing all this work, I count the total red points here, how many this mutual fund has got. So talking about Taurus Large Cap Fund, here we have three red
5:24 points. Next we have LIC Mutual Fund Large Cap Fund which has four red points and the only mutual fund is Aditya Birla which has one red point. So out of these 10 mutual funds we can clearly see that Torus Large Cap Fund and LIC Mul Fund Large Cap Fund both are the worst performing mutual funds. So we will mark these mutual funds in overall red here. If you are invested in these mutual funds, then I think it would be better that you switch these mutual funds and go to some other mutual fund. Because in such a long duration, if a mutual fund has given poor performance , beta is high, alpha is low, then it is not the case that suddenly in the next one year or two years this mutual fund will suddenly start giving you very good performance. The possibility of this happening is very low. So it would be better if you select a good mutual fund for yourself. And among all these 10 mutual funds,
6:10 I am seeing one interesting mutual fund here. Which is Taurus Large Cap Fund. Its AUM is very low at Rs 49 crores. Its expense ratio is 2.41% which is very very high. Meaning the expense ratio is so high. Despite that, people have invested their money here. Obviously the AUM is Rs 49 crores. So many investors must have invested their money here. So this is a very strange thing. I don't know why people invest their money in these mutual funds. I may have invested on someone’s advice or I may not have knowledge of investments. Well whatever it is, here we come to large cap mutual funds. After this we talk about mid cap mutual funds. So again in mid cap mutual funds I have 10 mutual funds here. You can see them here. What are their names? So let me first go straight to the five-year CAGR here. Whose five year CAGR is the lowest? So here the lowest CAGR we are seeing is that of DSP MidC
6:56 Fund which is 23.19% in five years. So I will give it a red mark. And the second name that comes to us is Taurus Mid Cap Fund. Again Taurus' name comes up here. So I will give this also a red mark here. Then we talk about CAGR 10 years. This is the lowest CAGR of both the mutual funds over 10 years. So here we will give it red marking. Who has the lowest alpha ? So let us take a look here. This is -3.90 which is tors midcap fund. After this the second lowest is -2.82 which is UTI MidC Fund. Beta, let's see here who has the highest. This is Aitya Birla Sunlife Midcap Fund. Beta is very high at 1.31. After this, the second highest beta we are seeing here is 0.98, which is again Taurus Mid Cap
7:41 Fund and even along with Taurus, we are also seeing DSP Mid Cap Fund here. Its beta is also high here which is the same. So let me put this over here, Mark. So here we have red marking in three mutual funds. After that we count the total raid points here. So he got two. This one has got four and here it has got one and here again it has got two. Now let's count the raid points. So Taurus Mid Cap has four red points here. So, I will mark it here. And there is a tie between the two mutual funds which is this and this. We will give red marking to both of them here. So in a way we have three mutual funds here instead of two. But if we compare here again in a way, then the mutual funds which are tied i.e. DSP MidC Fund as well as Aitya Birls Sun Lef Midcap Fund, if we again do a little comparison between these two,
8:27 here we see that if we talk about the CAGR of 10 years, that is, if we talk about long duration, then DSP MidC Fund has still given higher returns as compared to Aitya Birla Sun Le Midcap Fund. If we talk about alpha, then again the alpha of DSP MidC is higher compared to Aitya Birla. If we talk about beta, then the beta of DSP MidC fund is also low compared to Aitya Birla Sunl Lef Midcap Fund, that is, DSP MidC fund is seen here in a better position compared to Aitya Birla Sun Life Midcap Fund. So, in a way, we can remove a marking here from above the DSP Mid Fund that yes, this is still better compared to Aditya Birla Sunlif Midcap Fund. So I will remove the marking here and we will reset it. So we have two mutual funds here, which is Aditya Birla Sunlife Midcap Fund
9:13 and the other is Tors Midcap Fund. So, in which of these mutual funds are you invested and in the worst case, whether you are invested in these two worst performing mutual funds or not, you can check here. So we will talk about other things later in the video. But before that there is one very important thing which I would like to talk about here. Look, if you are a long term investor as well as a trader and trade in FAO then the most important thing that comes into play is a right trading platform. Often most of the FAO traders ignore the fact that they are incurring losses in trading because their strategy is not being built properly. Order placement is taking time i.e. order punching is not happening timely. So your trading platform plays a big role in all these things. So here I think a good platform for trading in FAO is 5paisa. Here you find FNO 360, a dedicated platform for trading in FNO.
9:59 Where you get the Stratus Builder tool and many different tools. Such as Option Chain with GRCX, FNO Sts, OI Analysis etc. You can even view the Strudel option chain instead of the normal option chain for Strudel and place your Strudel order in one click. And along with the tools, if you ever need margin, 5Paisa also gives you the flexibility to pledge your mutual funds or ETFs to trade in FNO. And the best thing is that only the required margin is pledged by you here instead of complete holdings. Which is beneficial for you because here you can pledge only the holdings that are as per the margin you actually require and obviously here you can invest not only in FNO but also in stocks directly. You can also make your investments in mutual funds and ETS with zero commission and zero account opening fees. So
10:47 you should check out 5 Paisa. I have added its link in the description of this video and in my top comment. In the same way we come to small cap mutual funds. We have listed 10 Small Cap Mutual Funds here. And first of all we will talk about five years CAGR. I will quickly mark it so that I don't take much of your time and after that we will finally talk here. So in the case of small caps the competition is a little high. When I selected mutual funds here, basically two mutual funds based upon different parameters. So here we had red points one one red points with many mutual funds. So I started selecting additional mutual funds here. That means they started giving red points to them also. That is, when I selected three mutual funds in one column, then on that basis the red points that we have are looking something like this. Even now we can see here that there is a tie between ITI salc cap and union salc, that means the
11:33 Aditya Birls Sunliff Salc mutual fund of two to two has four, so clearly we have a bad mutual fund. If we look at these two, here you can see that ITI salc has an alpha of 4.01 in positive. Whereas if we look at Union Small Cap Mutual Fund, here its alpha is -1.39. And if we look at beta also, there is a difference in beta. Its beta is high. Its beta is low. But the difference is not like the difference we see in Alpha. Positive four on one side and -1.39 on the other. So a weak mutual fund if I can say between these two then yes, Union Small Cap Mutual Fund is a weak mutual fund because its alpha is in negative here. So I'll give this a red marking here. So let us give it a red marking here. So again we have two mutual funds here. We can say that they are
12:19 the worst performing mutual funds among the 10 mutual funds. So you can check here in which mutual fund you are invested. After this, the third category comes to us, the Flexi Cap Mutual Fund category. So you can see these 10 mutual funds here. After that I start marking here. We will talk about it later in the video after marking. Okay, so I have given the marking here. The first worst performing mutual fund is Taurus Flexi Cap Fund. I got three red points. After that comes LIC Mul Fund Flexi Cap Fund. He has got four red points. So if we look at the Flexi Cap Malu Fund category, out of these 10, these are the two mutual funds which are giving very poor performance as per the data of last 10 years. After this, finally the last category we have is the Large and Mid Cap Mutual Fund category. You can see here which are the 10 mutual funds. I will quickly mark it here. So in this category also we have two mutual funds. The first is Aitya Birla Sunlife Equity Advantage Fund. He has
13:06 got three red points. After that we come to Bank of India Large & Mid Cap Equity Fund. It has two red points. So one more thing I would like to clarify here is that if we talk about 10 year CAGR, then there are two mutual funds whose 10 year CAGR we do not have. But if we talk about other parameters, alpha and beta, then we are finding them to be correct compared to other mutual funds. Therefore, it can be assumed that these mutual funds can give better returns in the future. I am not saying that it will give best returns. But yes, it can give better returns compared to other mutual funds. That is why I have not given red marking to these mutual funds here. So again you can see here in which of these 10 large and mid cap mutual funds you are already invested and the worst performing mutual funds are these two. Are you invested in these or not?
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