All of My Mutual Funds Are Negative: What Should You Do?

Are you troubled by your portfolio turning red with Mutual Funds falling by 15% with 52-week high NAVs in India?

Well, you are not alone. The news headlines called it another "Black Monday" amidst the latest trigger of President Trump's tariff crackdown, which left every investor with only one question: "Is there any safe option to invest right now?"

Well, the answer lies in this post that promotes the all-time best strategy of "Buy the dip," supporting the idea of purchasing at a low value in the hope of selling high when the market rebounds.

Let's start by learning which mutual funds category is best suited for investment during this market crash.

What to Invest in when the Market is Falling?

One of the best categories to invest in during a market fall is Hybrid or defensive mutual funds.

Why? Hybrid Mutual Funds invest in mixed assets such as equity, debt and gold funds, which helps you balance the overall risk and reward in your portfolio. If equity funds fall, the debt portion acts as a cushion and vice versa.

But, one commonly asked question troubles everybody: "Which hybrid mutual fund offers safer returns if you have a low risk profile?"

You will find the answer in the next heading, discussing the various types of hybrid funds, how they behave and for whom they are best suitable.

3 Best Conservative Hybrid Mutual Funds to Invest in 2025

Here are the top performers of the hybrid category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
HDFC Hybrid Debt Fund	12/1/2003	3310	11.04	12.65
Parag Parikh Conservative Hybrid Fund	5/5/2021	2,448	11.47	-
Kotak Debt Hybrid Fund	12/2/2003	3,017	10.65	12.38

Best Suited for: Watchful investors seeking stable, better-than-FD returns.

Asset Mix: 75-90% in debt funds, up to 25% in Equity Funds.

Recommended Duration: The Best time to invest is a minimum of 3+ years.

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3 Best Aggressive Hybrid Mutual Funds to Invest in 2025

Here are the top performers of the aggressive hybrid category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
ICICI Pru Equity & Debt Fund	11/5/1999	40,962	18.99	26.44
HDFC Hybrid Equity Fund	4/1/2005	23,229	13.44	19.59
Edelweiss Aggr Hybrid Fund	8/12/2009	2,487	16.88	20.99

Best Suited for: First-time equity investors or cautious ones.

Asset Mix: 65-80% in equity and the remaining in debt.

Recommended Duration: The Best time to invest is 5+ years.

3 Best Dynamic Asset Allocation Mutual Funds to Invest in 2025

Here are the top performers of the dynamic asset allocation category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
HDFC Balanced Advtg Fund	2/1/1994	94,824	20.04	24.92
ICICI Pru Balanced Advtg Fund	12/1/2006	60,591	13.08	16.37
Edelweiss Balanced Advtg Fund	8/20/2009	12,239	11.66	15.27

Best Suited for: Investors looking for equity upside with active risk management.

Asset Mix: Adjusts dynamically between 0-100% equity or debt.

Recommended Duration: The Best time to invest is a minimum of 5+ years.

3 Best Multi Asset Allocation Funds to Invest in 2025

Here are the top performers of the multi-asset allocation category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
ICICI Pru Multi Asset Fund	10/31/2002	55,360	18.62	25.16
Tata Multi Asset Opportunities	3/4/2020	3,548	13.43	18.06
Quant Multi Asset Fund	3/21/2001	3,184	17.57	31.08

Best Suited for: Investors looking to diversify their mutual fund portfolio management.

Asset Mix: Minimum 10% each in equity, debt and Gold Mutual Funds.

Recommended Duration: The Best time to invest is at least 5+ years.

3 Best Arbitrage Funds to Invest in 2025

Here are the top performers of the arbitrage category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
ICICI Pru Equity Arbitrage	12/30/2006	25,727	6.76	5.48
Nippon India Arbitrage Fund	10/5/2010	13,698	6.6	5.42
SBI Arbitrage Opportunities Fund	11/3/2006	30,592	6.89	5.49

Best Suited for: Low-risk takers with added tax benefits.

Asset Mix: Mix of equity and debt stocks.

Recommended Duration: The Best time to invest is 6 months and up to 1 year.

3 Best Equity Savings Funds to Invest in 2025

Here are the top performers of the equity savings category to invest in during a market downturn:

Scheme Name	Launch Date	AUM (in cr)	3 Yrs Avg Returns	5 Yrs Avg Returns
HDFC Equity Savings Fund	9/5/2004	5,430	10.18	13.16
Kotak Equity Savings Fund	10/11/2014	8,043	10.87	12.08
DSP Equity Savings Fund	3/28/2016	2,517	10.33	12.67

Best Suited for: Tax efficiency seekers with steady income generation.

Asset Mix: Equity + Arbitrage + Debt.

Recommended Duration: The Best time to invest is a minimum of 3+ years.

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Final Thoughts

In short, it is natural to panic when you see your portfolio turning red, but in times like these, your patience and dedication are put to the test.

This is the ultimate test of time that asks for strategic planning to safe investments during market decline and draw out some strong plans that can withstand the market ups and downs and help you grow your SIP 2X better.

This is where the insights shared in this blog will be of help and can strongly weather out the market volatility while preparing your portfolio for better days ahead with best hybrid funds during market crash.

Pro Tip: See the 5 Best Mutual Funds Outperformed in Market Crash with One Click.