Only Three Equity Mutual Fund Categories Deliver Double-Digit Returns in 2026 So Far

Equity mutual fund performance has been far from uniform in 2026. While some categories have struggled to generate positive returns, only three have managed to cross the 10% mark so far this year, according to data available through September 30. 

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International equity funds have led the pack with a category return of 21.21%, followed by sectoral pharma funds at 13.98%. Small-cap funds are the third category to deliver double-digit returns, gaining 10.59%. 

The difference becomes even sharper when individual schemes are considered, with some of the top-performing funds delivering returns significantly higher than their respective category averages. 

International Equity Funds Lead With 21.21% Return 

International equity funds have emerged as the strongest equity mutual fund category in 2026 so far, delivering a 21.21% return. 

Within the category, Nippon India Taiwan Equity Fund has stood well ahead of its peers, returning 96.64% during the year. 

Edelweiss Emerging Markets Opportunities Equity Offshore followed with a return of 33.99%, while HSBC Global Emerging Markets Fund delivered 30.54%. 

Nippon India Japan Equity Fund returned 27.63%, while Franklin Asian Equity Fund gained 25.98%. 

The performance of these individual schemes also highlights the wide difference between returns generated by particular funds and the overall category average. 

Pharma Funds Deliver 13.98% 

Sectoral pharma funds are the second equity mutual fund category to cross the 10% return mark this year, delivering 13.98% through September 30. 

Kotak Healthcare Fund led the category with a return of 29.10%. 

HDFC Pharma and Healthcare Fund returned 22.93%, followed closely by PGIM India Healthcare Fund at 22.46% and WhiteOak Capital Pharma and Healthcare Fund at 22.37%. 

Quant Healthcare Fund delivered a return of 21.50% during the same period. 

Small-Cap Funds Cross Double-Digit Mark 

Small-cap mutual funds have delivered a category return of 10.59% in 2026 so far, making them the third equity category to generate returns above 10%. 

Bank of India Small Cap Fund emerged as the strongest performer in the category with a return of 30.21%. 

Samco Small Cap Fund returned 25.45%, while TrustMF Small Cap Fund gained 25.26%. 

Union Small Cap Fund delivered 21.36%, followed by ITI Small Cap Fund with a 19.82% return. 

Large-Cap and Technology Funds Remain Under Pressure 

The broader equity mutual fund picture has been considerably more mixed. 

Multi-cap funds have delivered a return of 1.10% in 2026 so far, while mid-cap funds have gained 0.56%. 

Flexi-cap funds, meanwhile, have declined 2.78%, while large-cap funds have fallen 8.17%. 

Technology funds have seen a much steeper decline, losing 20.27% during the same period. 

The numbers underline the sharp differences in performance across equity mutual fund categories in 2026. They also show that strong returns from individual schemes do not necessarily reflect the performance of an entire category, with the gap particularly visible among international equity, pharma and small-cap funds.