While the Nifty 500 index has struggled to surpass its September 26, 2024, peak, a recent analysis of active mutual fund performance reveals a contrasting picture. Many schemes across various categories have delivered substantial positive returns, with some reaching as high as 27.16% by September 22, 2026.
This performance highlights the potential for actively managed funds to generate alpha even during periods of broader market stagnation or underperformance. The study compared fund returns over the challenging two-year period, identifying top performers in several key categories.
Multi-Asset Funds Lead the Pack
The Multi Asset Allocation category showed some of the most impressive gains. The WhiteOak Multi Asset Allocation Fund led with a remarkable 27.16% return. Following closely were the DSP Multi Asset Allocation Fund at 25.78% and the Mahindra Manulife Multi Asset Allocation Fund with 24.51%.
These results suggest that diversified exposure across different asset classes can be a robust strategy during volatile market conditions.
Small-Cap Funds Show Strong Momentum
Small-cap funds also featured prominently among the top performers. The Motilal Oswal Small Cap Fund recorded the highest return in its category at 25.78%. The Union Small Cap Fund delivered 20.35%, and the ITI Small Cap Fund achieved 19.59%.
The strong performance in this segment underscores the importance of careful fund selection, as returns can vary significantly between individual schemes.
Double-Digit Returns in Multicap and Midcap Categories
In the Multicap category, the Motilal Oswal Multicap Fund topped with a 21.32% return, followed by WhiteOak Multicap Fund at 11.41% and Mahindra Manulife Multicap Fund at 9.58%.
Midcap funds also showcased strong performance, with the WhiteOak Mid Cap Fund leading at 18.93%. The HSBC Mid Cap Fund returned 18.17%, and the Invesco India Midcap Fund posted 16.75%.
Large & Midcap and Value Funds
Within the Large & Midcap segment, the Invesco India Large & Midcap Fund delivered 12.93%, followed by the Motilal Oswal Large & Midcap Fund at 11.66%, and the HSBC Large & Midcap Fund at 8.02%.
Among Value funds, the LIC MF Value Fund achieved 10.60%, with the DSP Value Fund at 9.31% and the Axis Value Fund at 6.23%.
Flexicap Funds Display Varied Performance
The Flexicap category also saw positive returns from its leading schemes. The Helios Flexi Cap Fund returned 9.86%, followed by the ITI Flexi Cap Fund at 8.62%, and the Bank of India Flexi Cap Fund at 7.10%.
This comprehensive comparison highlights the wide range of outcomes among actively managed funds, even when broader market conditions are challenging. Investors are advised to consider a fund's portfolio, risk profile, investment strategy, costs, and long-term performance rather than basing decisions solely on short-term returns. All mutual fund investments are subject to market risks, and consulting a qualified financial advisor is recommended before making any investment decisions.