Market Intelligence › Blogs And Updates

If money is lost in Mutual Fund – Hindi Guide

Mutual funds are incurring losses, money is sinking – what to do? Complete Hindi guide.

Published by The Retail Trader · AUG 09, 2026 · Features

Mutual funds are incurring losses, money is sinking – what to do? Complete Hindi guide.

Money is sinking in MF – what to do?

Don't panic. If the market is falling then the MF will also fall. This is normal. Recovery takes place.

Step-by-Step Action Plan

Step 1: Check Fund Type:
• Large Cap — Current Situation: -10 to -15%, Action: Hold, SIP continue
• Mid Cap — Current Situation: -15 to -25%, Action: Hold, SIP continue
• Small Cap — Current Situation: -25 to -40%, Action: Hold, SIP continue
• Sectoral — Current Situation: -30%+, Action: Review sector

Step 2: Check Fundamentals:
• Is the track record of the fund good? →Hold
• Fund manager changed? →Review
• Category overall down? → Normal, recovery will happen
• Is it a fund specific problem? → Switch to better fund

Step 3: Continue SIP

Do not stop SIP. Low prices = more units = Faster recovery.

Step 4: Average Down

If there is extra money then add the lump sum. More units mileage at cheaper prices.

Recovery Timeline

Keep these five points in mind:
• -10% — 2-3 months
• -20% — 6-12 months
• -30% — 1-2 years
• -40% — 2-3 years
• -50% — 3-5 years

When to Worry

Normal (Don't Worry):
• Market correction (-10 to -20%)
• Category down (all mid caps falling)
• Short-term volatility

Worry (Take Action):
• Fund consistently underperforming benchmark (3+ years)
• Fund manager changed
• Fund house shutting down
• Sector permanently declining

Cheat Sheet

Keep these points in mind:
• 📌 Money gets drowned in MF
• ACTION PLAN:
• 1️⃣ Check fund type (large/mid/small)
• 2️⃣ Check fundamentals (track record, manager)
• 3️⃣ Continue SIP (low prices = more units)
• 4️⃣ Average down if extra money
• RECOVERY TIMELINE:
• 📊 -10% → 2-3 months
• 📊 -20% → 6-12 months
• 📊 -30% → 1-2 years
• 📊 -40% → 2-3 years
• NORMAL:
• ✅ Market correction (-10 to -20%)
• ✅ Category down (all similar funds falling)
• ✅ Short-term volatility
• WORRY:
• ❌ Consistent underperformance (3+ years)
• ❌ Fund manager change
• ❌ Sector permanently declining
• AVOID:
• ❌ Panic selling
• ❌ Stopping SIP
• ❌ Checking daily (monthly check enough)

The Retail Trader — educational market analysis. Not investment advice.

This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.

Back to Market Intelligence