Market fall exposes flaws in aggressive mutual fund bets. Time for a reset?

First, their fresh investments in precious metals dropped sharply. Then, equity fund portfolios began to erode. In the first quarter of 2026, the Nifty 50 total return index (TRI) lost 14%, while individual funds saw a sharp dip in values. Most mutual fund portfolios went deep into the red, SIPs turned negative and investors lack visibility of a path toward profits. When the markets fell in March, several mutual fund portfolios declined more than their benchmarks. This is a clear signal that such portfolios aren’t as robust and resilient as expected.