Equity mutual funds lose up to 48% on SIP investments in FY26. Have you added any to your portfolio?

Core Insights - Domestic mutual funds experienced significant losses in FY26, with 486 out of 556 funds reporting negative returns, while most international funds performed positively [1][18] - The top-performing fund was Nippon India Taiwan Equity Fund, which delivered a remarkable 164% return on SIP investments in FY26 [12][19] - Experts recommend a diversified approach for SIP investments, focusing on broader international funds while using specific themes as satellite exposures [9][11][19] Domestic Fund Performance - Domestic equity mutual funds lost up to 48% on SIP investments in FY26, with notable losses from tech and small-cap funds [18] - Tata Small Cap Fund was down 32.56%, while other tech funds like HDFC Technology Fund and Tata Digital India Fund lost 31.79% and 30.13% respectively [2][18] - Invesco India Technology Fund and Invesco India Multicap Fund reported declines of 23.47% and 23.39% respectively [5][19] International Fund Performance - International funds generally outperformed domestic funds, with Mirae Asset Hang Seng TECH ETF FoF losing only 18.43% on SIP investments [6][19] - The analysis highlighted that many international markets are trading at elevated valuations, but they still provide geographical diversification benefits [16][19] Investment Strategies - Experts suggest staggering SIP investments gradually and avoiding return-chasing to mitigate risks associated with market volatility [10][19] - A recommended allocation strategy includes 10-20% of the portfolio in international exposure, primarily focused on US markets [15][19] - The recent performance of international funds is attributed to AI and tech-driven rallies, emphasizing the importance of a long-term investment view [15][19]