The Nifty 100 index has fallen 8.7% so far in 2026, creating significant challenges for active large-cap fund managers. According to Mint, 17 of 33 large-cap schemes have fallen more than the benchmark, while only 16 schemes managed to outperform the market decline. The divergence within the category has been striking, with the difference between the best and worst-performing fund exceeding 12 percentage points despite all schemes operating under the same large-cap mandate. Quant Large Cap Fund emerged as the standout performer with a gain of 0.7%, making it the only scheme in the sample to generate a positive return during the market correction.
According to reports from ET Now, Nippon India Small Cap Fund emerged as the top performer in the small-cap category with a 10-year annualised return of 21.92%. The fund also delivered the same return for both lump sum and SIP investments, earning a 4-star rating and managing ₹72,673 crore in assets as of April 30, 2026. In the mid-cap segment, Edelweiss Mid Cap Fund led with a 10-year annualised return of 19.98% for lump sum investments and 20.95% for SIP returns, achieving a 5-star rating and managing ₹15,911 crore in assets. Quant Flexi Cap Fund ranked first among flexi-cap funds with a 10-year annualised return of 20.77% for lump sum and 20.95% for SIP returns, managing ₹6,594 crore in assets despite having a 2-star rating.
During the recent market correction, several established large-cap funds demonstrated better downside protection than the benchmark. As per Mint, SBI Large Cap Fund managed ₹53,468 crore in assets and declined 6.31%, while Nippon India Large Cap Fund fell 8.04% despite managing ₹51,690 crore. However, the picture was mixed among prominent funds, with Mahindra Manulife Large Cap Fund being the biggest loser, declining 11.38% in 2026. Axis Large Cap Fund fell 9.05%, Mirae Asset Large Cap Fund declined 9.31%, and HDFC Large Cap Fund lost 9.48%. The performance of large funds suggests that fund size alone was not the determining factor in managing the downturn, with some large funds navigating the correction relatively well while others struggled.
As reported by ET Now, the Nippon India Small Cap Fund has a minimum lump sum investment of ₹5,000 and minimum SIP investment of ₹500, with an expense ratio of 0.63%. The Edelweiss Mid Cap Fund requires a minimum lump sum investment of ₹100 and minimum SIP investment of ₹100, with an expense ratio of 0.48%. The Quant Flexi Cap Fund has a minimum lump sum investment of ₹5,000 and minimum SIP investment of ₹250, with an expense ratio of 0.67%. The funds' top holdings include major companies across various sectors, with the small-cap fund's portfolio including HDFC Bank, MCX, BHEL, TD Power Systems, and Apar Industries.
