When the stock market falls sharply, most investors panic. But some mutual funds in India have stayed strong through every big crash — from the Harshad Mehta scam of 1992 to the global financial crisis of 2008 and the COVID crash of 2020. These funds did not escape losses completely, but they continued to recover, grow, and protect investor wealth in the long run. Their story shows how discipline, diversification, and time-tested strategies help investors survive every storm.
The Story of the Indian Mutual Fund Industry
The Indian mutual fund industry began in 1964 when the Unit Trust of India (UTI) launched the first-ever mutual fund for Indian investors. For many years, UTI was the only option. In the late 1980s and early 1990s, public sector banks such as SBI, Canara, and LIC entered the mutual fund space.
The industry really took off after 1993 when private and foreign players were allowed. Over the last 30 years, India’s mutual fund industry has grown into one of the largest in the world, managing trillions of rupees across equity, debt, hybrid, and thematic funds.
During this journey, the market faced several crashes — the 1992 Harshad Mehta scam, the 2000 dot-com burst, the 2008 global crisis, the 2015 China shock, and the 2020 pandemic crash. Despite these ups and downs, certain Indian mutual funds have stood tall, delivering consistent returns and building investor trust year after year.
UTI Mastershare: The Pioneer That Still Leads
The UTI Mastershare Unit Scheme, launched in 1986, is India’s oldest equity mutual fund. It was created when the Indian stock market was still developing and has witnessed every market meltdown since.
During the 1992 crash linked to the Harshad Mehta scam, most investors lost confidence in the markets, but UTI Mastershare continued to function and even attracted new investors later. In 2008, when global markets collapsed, it too saw a fall, but its focus on large and stable companies helped it recover faster than many small-cap funds.
Today, UTI Mastershare continues to be one of the most respected equity schemes. It focuses on long-term wealth creation through quality large-cap stocks. Its resilience across decades shows how disciplined portfolio management and steady investment philosophy help investors stay invested through fear and panic.
Franklin India Bluechip Fund: Surviving the Toughest Phases
Another long-standing fund is the Franklin India Bluechip Fund, launched in 1993. It is one of the oldest private sector mutual funds in India. The fund invests primarily in established large-cap companies with strong fundamentals.
Franklin India Bluechip has been through the Asian financial crisis in 1997, the technology bubble burst in 2000, and the 2008 financial crisis. While the fund’s returns dipped during these events, it consistently recovered because it focused on businesses with stable earnings and reliable management.
During the 2020 COVID crash, when the Sensex fell nearly 40% in a matter of weeks, the fund once again proved its resilience. It maintained its discipline, stayed invested in strong sectors like banking, IT, and FMCG, and helped investors recover as markets rebounded.
Perfect Finserv, a financial advisory firm known for guiding investors in long-term wealth planning, often points to Franklin India Bluechip as a classic example of the importance of staying invested through cycles. The firm highlights that patience and consistency with quality funds often outperform attempts to time the market.
Franklin India Prima Fund: Endurance in the Mid-Cap Space
Launched in 1993, Franklin India Prima Fund focuses on mid-cap stocks. Mid-cap funds usually carry more risk, but Prima Fund has managed to remain a stable performer even in volatile times. It survived the 2008 and 2020 crashes without collapsing because its managers followed a disciplined bottom-up stock-picking approach.
The fund’s long history proves that even within a riskier category, it is possible to survive and thrive by focusing on business quality, sound balance sheets, and careful diversification. For investors looking for long-term growth, Franklin India Prima Fund stands as an example of how time and discipline work better than chasing short-term returns.
SBI Magnum Equity ESG Fund: A Veteran with a Modern Twist
The SBI Magnum Equity ESG Fund began its journey in 1991, much before “ESG” (Environmental, Social, Governance) became a popular term. Over time, it evolved its strategy to match modern investor preferences while keeping its original focus on sustainable and responsible companies.
This adaptability has been its strength. During the financial crisis of 2008 and the COVID market fall, it remained relatively stable because of its exposure to large, strong, and responsible businesses. The fund’s ability to change with the times — while maintaining its core values — makes it one of the few that have truly survived every market environment.
Perfect Finserv’s analysts note that SBI’s focus on sustainability and corporate governance is not just an ethical choice but also a smart risk-management tool. Companies that maintain high ESG standards often show more stability in volatile markets.
Sundaram Midcap Fund: The Power of Long-Term Compounding
The Sundaram Midcap Fund, launched more than two decades ago, shows how compounding works over long periods. Investors who stayed invested through thick and thin have seen enormous growth in their capital.
For instance, a monthly SIP of ₹10,000 since its inception has grown to several crores today. This proves that mutual funds don’t just survive crashes — they reward investors who continue their investments during those times. The fund’s journey reflects how time in the market is far more powerful than timing the market.
Lessons from Funds That Have Survived Every Crash
The mutual funds that have survived every Indian market crash share some important traits. They have consistent investment philosophies. They don’t panic during market declines. Their fund managers follow disciplined processes and focus on long-term business quality rather than short-term price movements.
These funds also tend to diversify well — across sectors, industries, and sometimes asset classes. They stay away from speculative bets, even when markets are booming. Above all, they encourage investors to stay invested, reinforcing the principle that wealth is created over decades, not days.
Perfect Finserv explains this approach clearly to its clients: the goal is not to avoid every market fall but to stay invested in strong, well-managed funds that can recover. According to their advisors, market crashes are temporary but long-term compounding is permanent.
The Current Market Scene in 2025
In 2025, Indian mutual funds continue to grow despite short-term market fluctuations. While equity inflows have slowed in some months due to global uncertainty, the overall participation through SIPs remains robust. Investors are increasingly turning to systematic investment plans, which smooth out the impact of volatility.
Several older funds, including Franklin India Bluechip, UTI Flexi Cap, and SBI Magnum Equity ESG, have completed more than 25 years of operations. Many mid-cap and hybrid funds have crossed 20 years, proving the strength of India’s fund management ecosystem.
Market regulators like SEBI have tightened rules to improve transparency, reduce risk in small-cap funds, and protect investors during high inflow periods. This has helped the industry become more resilient and better prepared for future shocks.
Perfect Finserv regularly tracks these developments and guides investors on how to rebalance their portfolios when needed. The firm’s strategy focuses on spreading investments across equity, debt, and hybrid schemes to build stability through different economic cycles.
The Bigger Picture: Survival Through Adaptability
Indian mutual funds have grown from small, government-backed schemes to a mature, world-class industry. The funds that have survived every crash — from UTI Mastershare to Franklin India Bluechip — share a common ability to adapt. They changed fund managers, refined strategies, and embraced technology to stay relevant in a rapidly evolving market.
This adaptability is the secret to survival. As markets become more global and volatile, flexibility, governance, and transparency will decide which funds last another 30 years.
Perfect Finserv believes that this new era of investing requires not just choosing the right fund, but also understanding its journey and philosophy. Investors who learn from these veteran funds — and stay consistent — are the ones most likely to build wealth that truly lasts.
Final Thoughts
Every market crash tests investor patience. But as history shows, Indian mutual funds with strong foundations always bounce back. The funds that have survived every market fall are living proof that long-term investing works — even in uncertain times.
The message is simple: do not panic when markets fall. Choose good funds, trust the process, and give time a chance. The experience of stalwart funds and expert guidance from firms like Perfect Finserv can help investors not just survive market crashes but turn them into opportunities for lasting wealth creation.
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