No investing in mutual funds does not remove risk of loss due to market volatility. The risk is balanced and the people handling the funds are experts. Hence the chances of risk are reduced for higher gains.
MUTUAL FUNDS · INDIA
Understand every mutual fund category before you invest
A clear breakdown of the fund types available on Indian platforms, and how leading schemes in each category have performed to date.
8
Fund categories
₹73.7L Cr
Industry AUM
27.4Cr
Investor folios
61
Months of SIP inflows
Types of mutual funds
● High volatility
Equity Funds
Invest mainly in company shares. Split by size - large, mid, small-cap or by flexi-cap strategy across all three.
e.g.Parag Parikh Flexi Cap, HDFC Mid Cap
● Low volatility
Debt Funds
Invest in government and corporate bonds. Returns move with interest rates rather than equity markets.
e.g.ICICI Pru Short Term Fund
● Medium volatility
Hybrid Funds
Mix equity and debt in one scheme, aiming for growth with a cushion against pure equity swings.
e.g.Balanced Advantage Funds
● High volatility
ELSS - Tax Saving
Equity funds with a mandatory 3-year lock-in, in exchange for a deduction under Section 80C.
e.g.Most fund houses offer one ELSS scheme
● Medium volatility
Index Funds
Passively track a benchmark like the Nifty 50 or Sensex. Low cost, no active fund manager bets.
e.g.UTI Nifty 50 Index Fund
● High volatility
Sectoral & Thematic
Concentrated in one industry or theme - PSU, banking, technology instead of the broader market.
e.g.CPSE ETF, SBI PSU Fund
● Low volatility
Liquid & Overnight
Park cash in money-market instruments for a day to a few months. Closer to a savings account.
e.g.HDFC Liquid Fund
● Medium volatility
International & Global
Gives exposure to overseas markets, such as the US or global equities, through a fund bought in India.
e.g.Motilal Oswal Nasdaq 100 FoF
Financial Well-Being
Professional management
Grow your money! Invest with Enrich’s experts. Skip the hassle, relax, let them handle it.
Invest with Comfort
Start investing for Rs 100! Grow money gradually with SIPs or invest lump sums.
Portfolio Diversification
Spread your investments (stocks, bonds) to balance risk. Invest for long term and consider fixed income for stability.
Tax Savings
Save tax & grow wealth! Invest in ELSS Mutual Funds (tax deductible up to Rs 1.5 Lakh).
Top performing mutual funds
Equity - Small & Mid Cap
| Fund | Fund House | 3YR CAGR | 5YR CAGR |
|---|---|---|---|
Bandhan Small Cap Fund | Bandhan Mutual Fund | 30.8% | 21.4% |
Quant Small Cap Fund | Quant Mutual Fund | 21.7% | 20.5% |
HDFC Mid Cap Fund | HDFC Mutual Fund | 20.9% | 20.7% |
Nippon India Small Cap Fund | Nippon India Mutual Fund | 18.6% | 20.5% |
Equity — Flexi Cap & Large Cap
| Fund | Fund House | 3YR CAGR | 5YR CAGR |
|---|---|---|---|
Motilal Oswal Midcap Fund | Motilal Oswal Mutual Fund | 18.9% | 22.7% |
Parag Parikh Flexi Cap Fund | PPFAS Mutual Fund | 14.7% | 14.7% |
Sectoral & Thematic
| Fund | Theme | 1YR return |
|---|---|---|
CPSE ETF | Public-sector companies | 116.4% |
SBI PSU Fund | Public-sector companies | ~99.8% (category avg.) |
Debt - Short Duration
| Fund | Fund house | 5YR CAGR |
|---|---|---|
ICICI Prudential Short Term Fund | ICICI Prudential Mutual Fund | ~7.8% |
Why Invest in Mutual Funds?
Investments are the key metric to meet your financial goals with style, comfort, and security. With many options in the crowded mutual fund space, things might look a little puzzling about how to separate the grain from the chaff. Mutual funds are an umbrella term comprising various instruments such as stocks, bonds, government-backed schemes, gold, and fixed deposits. Mutual funds are best for people who want to enjoy a host of benefits and at the same time help their wealth to grow.
Discover some of the top-performing mutual fund schemes across major investment categories, selected based on their historical returns and consistent performance. The list highlights leading equity, debt, sectoral, and hybrid funds by comparing key metrics such as 1-year returns and 3-year or 5-year CAGR, helping investors understand how different funds have performed over time.
These rankings are compiled using data tracked by leading Indian mutual fund research platforms as of mid-2026. While past performance does not guarantee future returns, this overview serves as a valuable starting point for identifying high-performing funds and making more informed investment decisions based on your financial goals, risk tolerance, and investment horizon.
How to Choose the Right Mutual Fund
Choosing the right mutual fund starts with understanding your financial goals, investment horizon, and risk tolerance.
Whether you're investing for wealth creation, retirement, tax savings, or regular income, selecting a fund that aligns with your objectives is essential. Before investing, evaluate factors such as the fund's historical performance, expense ratio, fund manager's track record, portfolio diversification, and investment strategy.
Taking these key aspects into account can help you make informed decisions and build a portfolio that supports your long-term financial success.
A note on these figures
Equity fund returns above are annualised (CAGR); the sectoral 1-year figures are absolute, not annualised. Small and mid-cap funds carry the highest 3–5yr returns here but also the sharpest drawdowns in a downturn.
SEBI does not permit any mutual fund to promise a fixed return — this page is for information only, not investment advice.
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Disclaimer: Investment in securities/commodities market subject to market risk, read all the related documents carefully before investing/trading.
Analyst Certification: I/We, Ayushi Jain Research Analyst, authors, and the name subscribed to this report, hereby certify that all the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. NISM Research Analyst registration number – NISM-201900015194.