Several equity mutual funds have delivered strong returns over the past five years, with mid-cap and small-cap funds dominating the top performers. According to reports from Mint, the Motilal Oswal Midcap Fund leads with 22.88% returns, followed by Bandhan Small Cap Fund at 29.54%, Invesco India Smallcap Fund at 22.16%, Invesco India Mid Cap Fund at 21.94%, and Nippon India Growth Mid Cap Fund at 21.56%. As reported by Value Research, these returns are based on direct plans and exclude sectoral funds, with data as of June 25, 2026.
The top-performing funds demonstrate clear strategic differences in their investment approaches. Motilal Oswal Mid Cap Fund maintains 80.86% allocation to mid-cap stocks with no small-cap holdings, while Invesco India Smallcap Fund focuses on 66.45% small-cap exposure with minimal cash holdings at 1.09%. According to the analysis, Bandhan Small Cap Fund combines aggressive small-cap positioning with 10.12% cash allocation for defensive buffer, while Invesco India Mid Cap Fund maintains a more balanced structure with 64.90% mid-cap, 18.14% large-cap, and 16.96% small-cap exposure.
The funds' portfolio composition reveals distinct investment philosophies across market segments. Motilal Oswal Mid Cap Fund holds One97 Communications, Coforge, and Kalyan Jewellers among its top positions, while Invesco India Smallcap Fund focuses on Sai Life Sciences, Amber Enterprises, and Aditya Infotech. As reported by Mint, Bandhan Small Cap Fund includes Sobha, REC, and SBI as major holdings, and Nippon India Growth Mid Cap Fund features BSE, Fortis Healthcare, and Federal Bank in its portfolio. The funds maintain varying cash allocations ranging from 1.09% to 10.12% to manage market volatility.
The performance data demonstrates the potential of diversified equity funds across different market segments. According to the analysis, if you had invested ₹1 lakh as a lump sum in the Motilal Oswal Midcap Fund, your investment would have grown to approximately ₹2.8 lakh over the last five years. As reported by Value Research, the data excludes sectoral funds and reflects direct plan returns, highlighting the strong return potential of diversified equity funds despite higher volatility associated with mid-cap and small-cap investments.
