Top Mutual Funds 2026: Small-Cap Fund Gains 17.82%

Indian equity markets experienced a difficult year, but several equity Mutual Funds managed to deliver double-digit returns despite their benchmarks declining. Small-cap funds emerged as the standout performers, with the leading schemes recording gains of up to 17.82% in the year ended November 2, 2026.

While the Nifty 50 declined 7.88% during the period, the three leading small-cap funds delivered returns ranging from 11.31% to 17.82%. Their performance highlights how individual mutual fund schemes can perform differently from their broader market benchmarks, even during periods of weakness.

Small-cap funds were not the only category to produce positive returns. Across five major equity mutual fund categories, the top three performers in each category managed to remain in positive territory despite losses in their respective benchmarks.

Small-Cap Mutual Funds Deliver the Biggest Gains

Small-cap funds recorded the strongest returns among the five equity mutual fund categories examined. TRUSTMF Small Cap Fund emerged as the leading performer, delivering a return of 17.82% over the year ended November 2, 2026.

Bank of India Small Cap Fund followed with a gain of 16.26%, while Union Small Cap Fund delivered 11.31%.

The difference becomes more significant when compared with the Nifty Smallcap 250 TRI, which declined 1.28% during the same period. TRUSTMF Small Cap Fund outperformed its benchmark by 19.11 percentage points, marking the widest outperformance among the leading funds across the five categories.

The performance demonstrates that some actively managed small-cap schemes managed to generate positive returns even as the broader small-cap benchmark remained under pressure.

Mid-Cap Funds: HSBC Midcap Fund Leads the Category

Mid-cap mutual funds also produced positive returns among their leading performers, although the gap between the top schemes was considerable.

HSBC Midcap Fund topped the category with a return of 10.16%, despite the Nifty Midcap 150 TRI declining 2.67% during the same period.

WhiteOak Capital Mid Cap Fund ranked next with a gain of 3.73%, followed by Bandhan Mid Cap Fund, which delivered 2.78%.

The difference in returns among these schemes highlights the variation in performance within the mid-cap category. While the leading fund delivered a double-digit gain, the other two recorded more modest positive returns.

Multi-Cap Funds Stay Positive Despite Benchmark Losses

Multi-cap mutual funds also featured among the categories where leading schemes delivered positive returns during the market downturn.

Groww Multicap Fund led the category with a return of 9.35%. TRUSTMF Multi Cap Fund followed with 8.23%, while ITI Multi Cap Fund delivered 5.75%.

Their benchmark declined 4.08% over the same period. This difference indicates that the leading multi-cap schemes managed to outperform the broader market measure despite the challenging equity environment.

Flexi-Cap Funds: ITI Flexi Cap Fund Tops the List

Flexi-cap funds also produced positive returns among their top-performing schemes. ITI Flexi Cap Fund led the category with a gain of 6.46% for the year ended November 2, 2026.

This performance came as the Nifty 500 TRI declined 5.33% during the same period. The difference between the fund’s return and its benchmark reflects its relative performance during a period of broad market weakness.

Large-and-Mid-Cap Funds Deliver More Modest Gains

Large-and-mid-cap funds recorded comparatively moderate gains among the five categories. Quant Large & Mid Cap Fund emerged as the leading performer, delivering a return of 5.35%.

Its benchmark declined 4.55% during the same period. Although the fund remained in positive territory, its performance was less pronounced than the gains recorded by the leading small-cap and mid-cap schemes.

Top Mutual Fund Performers Across Five Equity Categories

The following table summarises the leading schemes and their reported returns for the year ended November 2, 2026.

What Should Investors Consider Before Investing in These Funds?

The performance figures show that mutual fund returns can vary significantly, even among schemes belonging to the same category. While the leading funds managed to outperform their benchmarks, their results should not automatically be treated as evidence of consistent long-term performance.

It is also important to remember that the figures represent the top three performers in each category, rather than the performance of every scheme. Other funds may have delivered different results during the same period.

Investors should examine a fund’s performance over multiple market cycles rather than relying entirely on its latest one-year return. Longer-term returns, portfolio composition, Investment strategy, volatility and the risks taken to generate gains are important factors to consider.

Small-cap and mid-cap funds can experience substantial price fluctuations, making investment risk and time horizon particularly important considerations. A scheme that performs well during one market phase may not necessarily maintain the same position when market conditions change.

Can the Top-Performing Mutual Funds Sustain Their Gains?

The latest performance figures demonstrate that some equity mutual funds managed to generate positive returns despite weakness in their respective benchmarks. Small-cap schemes led the gains, while multi-cap, flexi-cap, mid-cap and large-and-mid-cap funds also produced positive results among their leading performers.

However, sustaining these gains will depend on future market conditions, portfolio decisions and the ability of fund managers to navigate changing economic and corporate earnings trends. Investors should therefore look beyond short-term rankings and assess whether a fund’s investment approach matches their financial goals and risk tolerance.

The key takeaway is that strong one-year performance can help identify schemes worth examining further, but it does not guarantee similar returns in the future.