From its last peak on 26 September 2024 to 30 April 2026, the Indian equity market has moved through a volatile, largely range-bound phase, marked by sharp corrections and brief recoveries. The phase was shaped by multiple headwinds, including persistently high global interest rates, sticky inflation and risk-off sentiment amid geopolitical tensions including US-Israel-Iran war. Persistent foreign portfolio investor (FPI) outflows weighed on large-cap stocks, while steady domestic institutional inflows provided partial support, preventing deeper market declines.

Equity mutual funds followed suit, with many schemes across categories correcting more than their respective benchmarks, while a few showed resilience. bl.portfolio computed SIP performance for this 19-month period across major equity categories to identify the top and bottom five schemes. SIP returns shown here are in XIRR (extended internal rate of return), the annualised return that accounts for the timing and amount of each installment. Also analysed were stock holdings of top- and bottom-performing schemes in each category on point-to-point return basis, tracking their performance over the September 30, 2024 to April 30, 2026 period to identify sectors and stocks that drove or dragged returns.

It is important to mention that despite market volatility, SIP collections have remained robust in recent months, underscoring the resilience of retail investor flows and the growing stickiness of systematic investing.

Large-cap

The active large-cap category was the weakest among market-cap-based segments during this period. On average, it delivered an XIRR of -1.3 per cent, while the benchmark Nifty 100 TRI declined a relatively modest 0.5 per cent.

Bank of India Large Cap Fund, with an XIRR of 4.3 per cent, emerged as the top performer, aided by strong exposure to PSU banks, capital goods, defence and metals. Stocks such as TD Power Systems (174 per cent), SBI (35 per cent) and Tata Steel (25 per cent) were key contributors. Despite weakness in IT (Infosys, TCS) and FMCG, exposure to infrastructure and manufacturing themes aided performance.

In contrast, LIC MF Large Cap (-5 per cent) lagged peers due to underperforming large-cap defensives and IT. Major drags included ITC (-39 per cent), Infosys (-37 per cent), TCS (-42 per cent) and HUL (-23 per cent). While some names such as SBI and BEL performed strongly, exposure to HDFC Bank and Kotak Bank led to muted returns.

Mid-cap

Mid-cap funds outperformed other categories, delivering 5.6 per cent XIRR. This compares to 7.7 per cent from their benchmark Nifty Midcap 150 TRI. Despite volatility, the segment benefitted from strength in industrial and capex-linked mid-sized stocks.

ICICI Prudential Midcap (17 per cent XIRR) stood out, driven by exposure to capital goods, industrials, capital markets and select financials. Key contributors included Multi Commodity Exchange (162 per cent), Hitachi Energy (130 per cent), Nalco (89 per cent) and Navin Fluorine (98 per cent). Financials such as Muthoot Finance (68 per cent) and Nippon Life AMC (55 per cent) added alpha. Importantly, avoidance of weak pockets such as IT enhanced relative performance.

Motilal Oswal Midcap lagged others due to concentrated exposure to retail and consumption names such as Trent (-45 per cent), Prestige Estates (-23 per cent) and Tube Investments (-32 per cent).

Small-cap

The small-cap category delivered 3.9 per cent XIRR, compared to 2.2 per cent from the Nifty Smallcap 250 TRI.

Union Small Cap topped the category with 11.7 per cent XIRR, driven by outsized gains from stocks such as MCX (162 per cent), GE Vernova (167 per cent), Gabriel India (98 per cent), SJS Enterprises (80 per cent) and Karur Vysya Bank (64 per cent). Unlike peers, it avoided heavy exposure to consumption and chemicals.

Tata Small Cap lagged, as key drags came from sharp declines in transport and logistics (Allcargo Logistics -85 per cent, Transindia Real Estate -38 per cent), retail (Shoppers Stop -62 per cent) and commercial services (Quess Corp -74 per cent). Chemicals and pharma exposure (BASF -50 per cent, Cohance -58 per cent, Hikal -48 per cent) also suffered.

Large & mid-cap

The large and mid-cap category delivered 2.3 per cent XIRR, versus 3.6 per cent from the Nifty LargeMidcap 250 TRI.

Motilal Oswal Large & Midcap topped the category. Outperformance was driven by concentrated bets in high-growth sectors such as capital markets, defence and electrical equipment. Stocks such as MCX (162 per cent), GE Vernova T&D (167 per cent), Bharat Electronics (51 per cent) and Amber Enterprises (66 per cent) delivered strong gains.

Tata Large & Mid Cap lagged due to sharp declines in Quess Corp (-74 per cent), Devyani International (-36 per cent), Gujarat State Petronet (-32 per cent) and Sundram Fasteners (-38 per cent), which weighed heavily. The fund also had exposure to lagging sectors such as IT, consumption and chemicals, while participation in outperforming themes such as capital goods and PSU plays was limited.

Flexi-cap

The flexi-cap category delivered -0.1 per cent XIRR, while the Nifty 500 TRI gained 1.3 per cent.

Quant Flexi Cap topped the category. Key contributors included Adani Power (69 per cent) and infrastructure-linked names such as L&T. Its dynamic allocation across power, autos and capital markets, along with concentrated bets, helped it capture market upcycles.

UTI Flexi Cap was the laggard. Underperformance was driven by sharp drawdowns in consumption, chemicals and healthcare stocks. Holdings such as Cohance Lifesciences (-58 per cent), Syngene (-47 per cent), Rossari Biotech (-47 per cent) and Clean Science (-48 per cent) dragged returns. IT exposure (Infosys, Coforge) added to the weakness.

Multi-cap

The multi-cap category delivered 1.9 per cent XIRR, compared to 2.4 per cent from the Nifty 500 Multicap 50:25:25 TRI.

Bank of India Multi Cap led the category, benefiting from exposure to metals, PSU banks, autos and capital market stocks. Key gainers included Acutaas Chemicals (198 per cent), Indian Bank (63 per cent), FSN E-Commerce (35 per cent) and Shriram Finance (31 per cent).

Invesco India Multicap lagged, as underperformance was driven by weakness in retail, IT and industrial cyclicals. Stocks such as Trent (-45 per cent), Aditya Birla Real Estate (-47 per cent), Jyoti CNC (-34 per cent) and Coforge (-14 per cent) were key drags.

Published on May 2, 2026