Industry data show that by August 2025, the average one-year rolling returns of equity mutual-fund schemes in India turned negative, ending a nearly six-year streak of positive performance. Nearly 25% of net inflows in 2025 so far are concentrated in just six stocks, while half the investments are concentrated in 19 stocks, raising concerns about concentration risk. All categories—large-cap, mid-cap and small-cap—have seen median returns drop into negative territory, prompting fund houses and analysts to reassess positioning amid valuations and investor risk appetite.