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Equity Funds in the Red Since 2008

There are still a number of equity funds that haven't managed to recover from the market crash of 2008

Fortune does not always favour the brave. It is six years since the stock market crisis of 2008 when across the board diversified equity mutual fund schemes witnessed their NAVs plummet. While a lot many of fund schemes have turned the tide and done well, there are several that are still in the red.

We analysed the universe of diversified equity funds for the two periods; Jan 8, 2008 and Feb 28, 2014. The results are not very favourable: a total of 89 schemes are yet to touch the NAVs of Jan 2008 as on Feb 28, 2014. Collectively, these 89 schemes lost a lot of money and the table indicates the asset erosion of five big funds. Infrastructure funds lost the most, with a total of 11 of them finding a place in the losers list. The poor fate of the infrastructure sector has only added to their woes. A word of advice to investors: instead of waiting for a miracle, they should cut their losses and exit these funds.