Equity mutual fund returns have been sharply uneven in 2026. While several categories are in negative territory, only three equity mutual fund categories have delivered more than 10% so far this year, based on category-level data as of 30 September.
International equity funds lead the list with a 21.21% return, followed by at 13.98% and small-cap funds at 10.59%. In contrast, large-cap funds have lost 8.17%, while technology funds have fallen 20.27% during the same period.
The category-level numbers, however, do not tell the whole story. Returns have varied significantly among individual funds within these categories.
International equity funds lead the 2026 performance table
The 21.21% category return for international equity is striking when compared with most India-focused equity categories. But the bigger story is the dispersion within the category.
Nippon India Taiwan Fund has returned 96.64% in 2026 so far. That is more than four times the category-level return. The next funds in the table are much closer to one another, with Edelweiss Emerging Markets Opportunities Equity Offshore at 33.99% and HSBC Global Emerging Markets Fund at 30.54%.
|
Top international equity funds |
2026 YTD return |
| Nippon India Taiwan Equity Fund | 96.64% |
| Edelweiss Emerging Markets Opportunities Equity Offshore | 33.99% |
| HSBC Global Emerging Markets Fund | 30.54% |
| Nippon India Japan Equity Fund | 27.63% |
| Franklin Asian Equity Fund | 25.98% |
| Source: Morningstar. Data as of 30th September. | |
Nippon India Japan Equity Fund and Franklin Asian Equity Fund have also delivered more than 25% so far this year.
Pharma funds have also delivered strong gains
The second category to cross the 10% mark is pharma, which returned 13.98% through 30 September.
The top funds have done considerably better than the category average, here as well. Kotak Healthcare Fund delivered 29.10%, more than twice the category return.
|
Top Pharma funds |
2026 YTD return |
| Kotak Healthcare Fund | 29.10% |
| HDFC Pharma and Healthcare Fund | 22.93% |
| PGIM India Healthcare Fund | 22.46% |
| WhiteOak Capital Pharma and Healthcare Fund | 22.37% |
| Quant Healthcare Fund | 21.50% |
| Source: Morningstar. Data as of 30th September. | |
Small caps cross 10%, but the strongest funds are much higher
recorded a 10.59% category return through September, making them the third equity category to cross the double-digit mark.
The difference between the category and its top performers is again substantial. Bank of India Small Cap Fund returned 30.21%, while Samco Small Cap Fund and TrustMF Small Cap Fund returned 25.45% and 25.26%, respectively.
|
Top small-cap funds |
2026 YTD return |
| Bank of India Small Cap Fund | 30.21% |
| Samco Small Cap Fund | 25.45% |
| TrustMF Small Cap Fund | 25.26% |
| Union Small Cap Fund | 21.36% |
| ITI Small Cap Fund | 19.82% |
| Source: Morningstar. Data as of 30th September. | |
The broader equity picture explains why these three categories stand out. Multi-cap funds have returned 1.10% and mid-cap funds 0.56%, while flexi-cap funds have declined 2.78%. Large-cap funds have fallen 8.17% during the same period.
For investors, the 2026 numbers underline how differently equity mutual fund categories and individual schemes have performed this year. The high returns of a handful of funds also do not mean the entire category delivered comparable returns, making the distinction between category performance and individual fund performance important when looking at the year’s winners.