In 2025, India equity funds were the worst performers among UK funds, with fewer than 10% of Morningstar-rated funds losing money. Indian markets, previously strong, faced vulnerability due to high valuations. Other emerging markets like Korea, Latin America, and China outperformed India. India’s strong growth led to stretched valuations, making the market susceptible to changes in sentiment.

Among the worst-performing funds for UK investors in 2025 were the Invesco India Equity Fund, Stewart Investors Indian Subcontinent All Cap Fund, Liontrust India Fund, MI Polen Capital Emerging Markets Discovery Fund, GQG Partners US Equity Fund, Pictet Timber, Comgest Growth India, Aberdeen Indian Equity Fund, FSSA Indian Subcontinent All-Cap Fund, and Wellington Management Funds FinTech Fund. These funds experienced double-digit losses, underperforming their respective categories, with some falling further in December.

Read more at Morningstar: The UK Funds That Lost Investors the Most Money in 2025