6 SBI Mutual Funds That Gave Negative Returns In 1-Year, Do You own?

It has been a tough going for mutual fund schemes over the last 1-year. The markets during this time have gone nowhere and in the period it has been a battle for returns. In fact, to make matters worse, stocks from the broader markets have collapsed, compounding the woes for fund managers.

Here are a list of SBI Mutual Fund Schemes with negative returns

Name of the scheme	1-year returns
SBI Technology Opportunities	-10.82%
SBI Magnum Comma Fund	-12.70%
SBI Flexi Cap Fund	-3.6%
SBI Healthcare Opportunities	-1.1%
SBI Focused Equity Fund	-5.86%
SBI Next 50 Index	-7.68%

A closer look will suggest that the SBI Technology Opportunities Fund took a massive pounding on account of a drop in tech stocks. Let's tell you a bit of what is happening with technology stocks. The problem right now is that there are worries of recession in the US as the US Fed continues to hike interest rates. This has led to hammering in tech stocks across the globe. Stocks like Infosys, HCL Tech, TCS and Tech Mahindra have fallen, leading to a drop in the NAVs of fund like SBI Technology Opportunities Fund. The same can be said about the SBI Healthcare Opportunities Fund, where healthcare stocks have not been "the preferred" in the last 1-year. We believe that there is scope for some recovery, though robust returns could be hard.

Going ahead, much of the performance of SBI Mutual Fund schemes would depend on the markets as well. Fears of a slowdown and rising interest rates could have its own impact on the stock markets in India and individual stocks in particular. This may have some impact on the NAVs of mutual funds. To generate returns in the next 1-year is likely to be tough as the RBI may continue to hike interest rates in India.

Disclaimer

The above article is for information only. We have highlighted the returns of select SBI Mutual Fund Schemes and have no recommendations on buying, selling or holdings the units of the mentioned schemes. Investing in mutual funds is risky and investors should exercise caution.