Top equity mutual funds in 2026: Which active diversified schemes lead YTD, 3-year and 5-year CAGR return charts?

Equity mutual funds come in different categories, including large-cap, mid-cap, small-cap, and diversified strategies. While short-term returns can be led by a particular segment of the market, a longer return period can show whether a scheme has also delivered across different market cycles.

Among active diversified equity funds, small-cap schemes currently dominate the list of top performers based on year-to-date (YTD) returns in 2026.

However, the three-year and five-year return charts also include mid-cap funds, showing that the leadership changes when investors look at a longer investment period.

Small-cap funds occupy all five positions among the top active diversified equity mutual funds by YTD returns in 2026. Bank of India Small Cap Fund leads the list with a 31.74% return, significantly ahead of the other schemes.

This indicates that small-cap funds have been among the strongest performers so far this year.

Which equity funds lead on a 3-year return basis?

The three-year ranking continues to be dominated by small-cap funds, but mid-cap schemes also enter the top five.

Bandhan Small Cap Fund leads with a 23.15% return, followed closely by ITI Small Cap Fund.

Invesco India Mid Cap Fund and HSBC Midcap Fund also feature in the list, with three-year returns of 21.81% and 21.79%, respectively. Bank of India Small Cap Fund also features in this list, delivering 21.60% over three years.

The five-year ranking shows a slightly broader mix. Four of the top five schemes are small-cap funds, while Motilal Oswal Midcap Fund is the only mid-cap scheme in the list.

The data also highlights why investors should look beyond a single return period when comparing equity mutual funds. A scheme that ranks highly over one period may not necessarily feature among the leaders over another period.

Which mutual fund features in all periods?

Bank of India Small Cap Fund is the only mutual fund present in all three lists. It ranks first on YTD returns in 2026 at 31.74%, fifth on the 3-year return chart at 21.60%, and first on the 5-year return chart at 20.04%.

This gives the scheme a presence across short-, medium-, and longer-term return periods. For investors comparing mutual funds, the comparison also underlines the importance of looking at multiple time frames rather than relying only on recent YTD performance.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.