4 Equity Funds Bled Cash — Is Your SIP at Risk?
In July, four equity mutual fund categories — large-cap, ELSS, dividend-yield, and value funds — saw investors pulling money out, even though most of these funds made positive returns. Here's what that means for your SIP and portfolio.
Investors pulled money from funds that gave positive returns — like leaving a restaurant after tasting good food.
These 4 mutual fund categories lost money despite giving positive returns in July
Key Takeaways
Check your large-cap fund's expense ratio — if it exceeds 1%, compare its 3-year returns against a Nifty 50 index fund before your next top-up.
Review your ELSS investments to confirm your lock-in period end date before redeeming — partial redemptions can trigger tax on short-term gains if units are under 3 years old.
Avoid stopping a SIP purely because of category-level outflow headlines — check whether your specific fund's NAV and portfolio quality have actually deteriorated.
In July, four equity mutual fund categories — large-cap, ELSS, dividend-yield, and value funds — saw investors pulling money out, even though most of these funds made positive returns. Here's what that means for your SIP and portfolio.
Here's what happened: Large-cap, ELSS, dividend-yield, and value equity fund categories all recorded net outflows in July 2025 even as most delivered positive monthly returns.. Large-cap funds are losing investor preference to low-cost index funds that track Nifty 50 and Sensex at a fraction of the cost with comparable performance.. ELSS outflows follow a predictable seasonal pattern — investors who started SIPs in January–March to save tax complete their 3-year lock-in and redeem around mid-year..
What you should do: Check your large-cap fund's expense ratio — if it exceeds 1%, compare its 3-year returns against a Nifty 50 index fund before your next top-up.. Review your ELSS investments to confirm your lock-in period end date before redeeming — partial redemptions can trigger tax on short-term gains if units are under 3 years old.. Avoid stopping a SIP purely because of category-level outflow headlines — check whether your specific fund's NAV and portfolio quality have actually deteriorated..
ELSS is still one of the only Section 80C instruments that gives equity market upside — even with outflows, a 10–12 year ELSS SIP historically beats PPF post-tax returns significantly.
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- [1]“Four equity fund categories saw outflows in July despite gains: Should investors be concerned?” mint - money · 12 Aug 2026
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