India’s best performing mutual fund schemes for October 2026
India’s best performing mutual fund schemes for October 2026 MUTUAL FUND RETURNS IN OCTOBER 2026 – THE BIG PICTURE October was a month when the markets were unimpressed despite the deluge of $133 billion from FCNR(B) deposits. Oil was…
India’s best performing mutual fund schemes for October 2026
MUTUAL FUND RETURNS IN OCTOBER 2026 – THE BIG PICTURE
October was a month when the markets were unimpressed despite the deluge of $133 billion from FCNR(B) deposits. Oil was well above $100/bbl and FPIs continued to be net sellers. Over the last one-month large caps did relatively better; falling by just about -0.8%. During the same period, the small cap index fell by -3.8% and mid-caps fell by -4.9%. Some of the heavyweights like HDFC Bank, ICICI Bank, and Reliance Industries saw buying interest on positive news flows.
The bigger risk was on the debt side, which could eventually spill over to equities as well. India 10-year bond yields are at a 3-year high of 7.38%. The RBI has hiked rates by 25 bps in October. Looking at the elevated levels of CPI and WPI inflation in September, it almost looks inevitable that there would be another rate hike of 25 bps in December too. Bond funds, especially the longer-duration names, have taken it hard during the last one month. Here are the rankings!
Equity Large Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Nippon India Large Cap Fund (G) | -6.626% | 10.174% | 11.332% |
| Invesco India Large Cap Fund (G) | -1.901% | 13.069% | 9.929% |
| Taurus Large Cap Fund (G) | 6.208% | 13.337% | 9.720% |
| Category Average | -6.085% | 8.492% | 6.849% |
| Data Source: Morningstar |
Equity Large & Mid Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Motilal Oswal Large & Mid Cap (G) | 2.618% | 20.105% | 17.499% |
| Invesco India Large & Mid-Cap (G) | 0.750% | 20.402% | 14.997% |
| Bandhan Large & Mid Cap (G) | -0.096% | 16.453% | 14.748% |
| Category Average | -2.502% | 11.873% | 10.145% |
| Data Source: Morningstar |
Equity Multi-Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Kotak Multi Cap (G) | -0.494% | 15.184% | 15.741% |
| Nippon India Multi Cap (G) | -4.432% | 11.782% | 14.541% |
| Mahindra Manulife Multi-Cap (G) | 7.568% | 15.942% | 13.563% |
| Category Average | 0.405% | 12.310% | 10.930% |
| Data Source: Morningstar |
Equity Flexi Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| BOI Flexi Cap Fund (G) | 7.815% | 17.908% | 14.809% |
| HDFC Flexi Cap Fund (G) | -3.400% | 14.752% | 14.680% |
| ICICI Pru Flexi Cap Fund (G) | 0.382% | 14.608% | 13.694% |
| Category Average | -1.833% | 10.710% | 9.033% |
| Data Source: Morningstar |
Equity Mid Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Motilal Oswal Mid-Cap Fund (G) | -4.702% | 17.128% | 18.674% |
| Invesco India Mid-Cap Fund (G) | 0.947% | 21.218% | 16.855% |
| HDFC Mid-Cap Fund (G) | 1.145% | 15.331% | 16.393% |
| Category Average | 0.989% | 14.088% | 12.427% |
| Data Source: Morningstar |
Equity Small Cap Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| BOI Small Cap Fund (G) | 27.080% | 20.372% | 18.314% |
| Invesco Small Cap Fund (G) | 9.019% | 20.525% | 17.590% |
| Quant Small Cap Fund (G) | 11.087% | 16.595% | 17.156% |
| Category Average | 8.339% | 13.655% | 13.611% |
| Data Source: Morningstar |
Dynamic Asset Allocation Funds (BAF)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| HDFC BAF (G) | -3.013% | 10.247% | 12.641% |
| ICICI Prudential BAF (G) | 1.397% | 10.468% | 9.881% |
| Bank of India BAF (G) | 1.481% | 8.555% | 9.853% |
| Category Average | -1.403% | 8.060% | 7.565% |
| Data Source: Morningstar |
Multi-Asset Allocation Funds (MAAF)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Quant Multi-Asset Fund (G) | 10.517% | 21.673% | 17.849% |
| Nippon Multi-Asset Fund (G) | 5.213% | 17.985% | 14.186% |
| ICICI Pru Multi-Asset Fund (G) | -1.114% | 13.254% | 13.947% |
| 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 Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Invesco Arbitrage Fund (G) | 6.856% | 7.465% | 7.135% |
| Kotak Arbitrage Fund (G) | 6.763% | 7.463% | 6.995% |
| Edelweiss Arbitrage Fund (G) | 6.701% | 7.405% | 6.955% |
| Category Average | 6.130% | 6.771% | 6.128% |
| Data Source: Morningstar |
Government Securities Funds (Gilt Funds)
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Bandhan Gilt Fund (G) | 7.011% | 8.322% | 6.397% |
| ICICI Prudential Gilt Fund (G) | 1.835% | 6.457% | 6.275% |
| SBI Gilt Fund (G) | 2.648% | 6.579% | 6.233% |
| Category Average | 1.221% | 6.033% | 5.143% |
| Data Source: Morningstar |
Corporate Bond Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Franklin India Corporate Bond (G) | 5.399% | 7.882% | 6.712% |
| Axis Corporate Bond (G) | 4.560% | 7.549% | 6.699% |
| Nippon India Corporate Bond (G) | 4.179% | 7.375% | 6.683% |
| Category Average | 3.513% | 6.621% | 5.825% |
| Data Source: Morningstar |
Credit Risk Funds
Top performing Direct Plans (Growth Option) on 5-year returns (as on 19th Oct-26):
| Name of Fund | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| BOI Credit Risk Fund (G) | 17.145% | 10.052% | 27.829% |
| DSP Credit Risk Fund (G) | 10.438% | 16.611% | 13.327% |
| ABSL Credit Risk Fund (G) | 11.417% | 12.971% | 10.785% |
| Category Average | 7.402% | 90136% | 90180% |
| Data Source: Morningstar |
Having seen returns for various categories of funds for the year to October 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 October 2026.
In the equity space; large cap, mid-cap, and small cap funds have seen pressure in 1-year returns. That is more due to market volatility in the last one year. However, the impact on longer-term returns has been marginal.
Longer duration debt funds have also taken a hit due to consistent rise in bond yields. In this case, the 1-year returns as well as longer-term returns have been impacted due to the sharp rise in yields. Credit risk funds appear to have outperformed in these markets.
Multi asset allocation funds (MAAFs); a favourite for investors for a long time, seems to be losing its allure. That is largely due to the sharp fall in the price of gold and silver since January 2026. It remains to be seen how the flow restrictions will have an impact.
Funds across categories, in the top-3 list, have managed to beat the benchmark index returns over 3-year and 5-year time frames. One year return comparison is less suggestive. To that extent, rank leaders are able to create alpha in most cases.
Past winners mostly tend to repeat, although the consistency of repeating has come down in recent months. However, the broad reading still is that past returns are a fairly good approximation of future performance. That has important implications for mutual fund investors, financial planners, as well as for mutual fund advisors.
There are some key challenges ahead. Equity funds are likely to continue to face market volatility. Debt funds will remain under pressure unless the RBI changes its hawkish stance. On the hybrid front, the flow restrictions into gold and silver FOFs could have a short-term impact. It will be interesting to see how the new investing order in mutual fund emerges.
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