India’s top performing mutual fund schemes in June 2026
India’s top performing mutual fund schemes in June 2026 MUTUAL FUNDS RETURNS IN YEAR TO JUNE 2026 Most of the equity funds have gained in the last one month as the markets saw a bottom after clear indications of a truce between the US…
India’s top performing mutual fund schemes in June 2026
MUTUAL FUNDS RETURNS IN YEAR TO JUNE 2026
Most of the equity funds have gained in the last one month as the markets saw a bottom after clear indications of a truce between the US and Iran. It now looks like the Straits of Hormuz will be reopened and trade flows will gradually normalize. The first impact is already visible in the tapering oil prices; and hopefully, growth has not been impacted too much. Here we capture equity funds, debt funds, and hybrid fund performance across 1-year, 3-year, and 5-years.
In June, the Fed and the RBI had kept status quo on rates, but the indications are clearly hawkish if inflation does not come down quickly. Bond yields have already reacted to a possible hike in interest rates and that has been impacting bond yields. More interesting will be the impact of the FAR bond flows and FCNR(B) flows on the Indian rupee. For now, it looks like the rupee will gain strength and rates will be headed, at least, 50 bps higher.
Equity Large Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon India Large Cap Fund (G) | 1.480% | 15.028% | 16.384% |
| Invesco India Large Cap Fund (G) | 4.647% | 15.741% | 14.458% |
| ICICI Pru Large Cap Fund (G) | 0.276% | 14.558% | 14.130% |
| Category Average | 0.308% | 11.747% | 10.923% |
| Data Source: Morningstar |
Equity Large & Mid Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Motilal Oswal Large & Mid Cap (G) | 12.144% | 25.393% | 21.821% |
| Invesco India Large & Mid-Cap (G) | 11.644% | 24.915% | 19.489% |
| ICICI Pru Large & Mid Cap (G) | 4.201% | 18.908% | 18.799% |
| Category Average | 5.403% | 16.409% | 14.912% |
| Data Source: Morningstar |
Equity Multi-Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon India Multi Cap (G) | 4.612% | 18.568% | 20.924% |
| Mahindra Manulife Multi Cap (G) | 11.227% | 20.336% | 18.343% |
| ICICI Pru Multi-Cap Fund (G) | 10.579% | 19.923% | 17.780% |
| Category Average | 5.763% | 16.963% | 15.209% |
| Data Source: Morningstar |
Equity Flexi Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| BOI Flexi Cap Fund (G) | 12.933% | 22.711% | 18.681% |
| HDFC Flexi Cap Fund (G) | 3.240% | 18.240% | 18.635% |
| Quant Flexi Cap Fund (G) | 16.401% | 20.111% | 18.037% |
| Category Average | 3.051% | 13.811% | 12.584% |
| Data Source: Morningstar |
Equity Mid Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Motilal Oswal Mid-Cap Fund (G) | -4.333% | 19.180% | 23.389% |
| Invesco India Mid-Cap Fund (G) | 13.629% | 26.265% | 22.451% |
| Nippon India Mid-Cap Fund (G) | 12.485% | 23.898% | 22.116% |
| Category Average | 9.666% | 20.087% | 17.549% |
| Data Source: Morningstar |
Equity Small Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Invesco India Small Cap Fund (G) | 14.295% | 24.990% | 22.572% |
| Bandhan Small Cap Fund (G) | 9.680% | 29.157% | 22.299% |
| Quant Small Cap Fund (G) | 13.410% | 21.477% | 21.937% |
| Category Average | 9.937% | 18.243% | 18.145% |
| Data Source: Morningstar |
Dynamic Asset Allocation Funds (BAF)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| HDFC BAF (G) | 1.900% | 15.127% | 15.981% |
| Baroda BNP Paribas BAF (G) | 7.652% | 14.068% | 12.901% |
| ICICI Prudential BAF (G) | 5.955% | 12.513% | 11.529% |
| Category Average | 2.394% | 10.528% | 9.392% |
| Data Source: Morningstar |
Multi-Asset Allocation Funds (MAAF)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Multi-Asset Fund (G) | 22.356% | 25.226% | 21.556% |
| ICICI Pru Multi-Asset Fund (G) | 7.486% | 17.437% | 18.241% |
| Nippon Multi-Asset Fund (G) | 17.020% | 20.634% | 16.998% |
| Category Average | N.A. | N.A. | N.A. |
| Data Source: Morningstar |
Arbitrage Funds (Cash-Futures)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Invesco India Arbitrage Fund (G) | 6.649% | 7.682% | 6.896% |
| Kotak Arbitrage Fund (G) | 6.512% | 7.697% | 6.797% |
| Edelweiss Arbitrage Fund (G) | 6.483% | 7.647% | 6.762% |
| Category Average | 5.912% | 6.930% | 6.023% |
| Data Source: Morningstar |
Government Securities Funds (Gilt Funds)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| ICICI Prudential Gilt Fund (G) | 4.039% | 7.498% | 6.849% |
| Bandhan Gilt Fund (G) | 6.941% | 7.794% | 6.464% |
| SBI Gilt Fund (G) | 3.284% | 6.632% | 6.371% |
| Category Average | 2.735% | 6.281% | 5.464% |
| Data Source: Morningstar |
Corporate Bond Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon Corporate Bond (G) | 5.200% | 7.643% | 6.887% |
| ICICI Pru Corporate Bond (G) | 5.893% | 7.677% | 6.831% |
| Axis Corporate Bond (G) | 5.604% | 7.815% | 6.822% |
| Category Average | 4.552% | 6.933% | 5.989% |
| Data Source: Morningstar |
Credit Risk Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Jun-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| BOI Credit Risk Fund (G) | 17.385% | 9.995% | 27.798% |
| DSP Credit Risk Fund (G) | 10.053% | 16.599% | 13.037% |
| ABSL Credit Risk Fund (G) | 12.808% | 12.928% | 10.790% |
| Category Average | 7.536% | 8.957% | 9.443% |
| Data Source: Morningstar |
Having seen returns for various categories of funds for the year to June 2026, here are some key takeaways for investors.
KEY INVESTOR TAKEAWAYS FROM THE MUTUAL FUND RANKINGS
Here are some key trends we deciphered from the MF rankings for year to June 2026.
While debt funds did see some return pressure due to rising bond yields, the mid-cap and small cap equity funds managed to perform better than the large cap funds in the equity space. There is clearly a shift happening towards alpha hunting in equities.
Among all the categories of funds, multi-asset allocation funds appear to be offering the most attractive returns on a risk-adjusted basis. That is more due to their exposure to gold and silver; which have been strong outperformers in the last 3 years.
Most of the funds in the top-3 obviously have not only beaten the averages, but have also beaten the comparable benchmark index returns. This outperformance is also visible across the shorter time frames of 1 year and 3-years. There was genuine alpha creation.
Very importantly, winners have been largely consistent over time. What does that mean? Past winners have predictive ability about being the likely top performers for the future. This has implications for investors and financial advisors. They can make consistency of top rankings as a principal criterion, while deciding future winners. In this case, the past is a fairly reliable barometer of the future; and that is the good news!
In the last couple of years, the mid to longer term returns were largely influenced by the low COVID base of 2020. That effect is likely to gradually wear away. That is when, the real outperformers across categories will come out in the open.
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