Date: February 23, 2026
Market Signal: Short‑term equity returns have sharply bifurcated; a few funds delivered top‑tier performance, while many others lagged the broader market theme.
Key takeaway for traders & investors:
A handful of equity mutual funds meaningfully outperformed other schemes over the last 12 months on lump sum investments, turning ₹1 lakh into ~₹1.20 lakh+, underscoring where active management has paid off recently.
Top 9 Equity Funds with >20% Annual Gains (Lump Sum)
| Fund | 1Y Lumpsum Return | Notes |
|---|---|---|
| ICICI Prudential Midcap Fund | ~25.70% | Best overall performer with a strong mid‑cap orientation. |
| HSBC Midcap Fund | ~22.37% | Mid‑cap strength driving above‑average gains. |
| Mirae Asset Midcap Fund | ~22.19% | Consistent mid-sector earnings boost. |
| Invesco India Midcap Fund | ~21.77% | Another mid-cap standout. |
| Kotak Focused Fund | ~21.26% | A focused equity strategy pays off. |
| Groww Multicap Fund | ~21.22% | Broad multicap exposure with decent gains. |
| Helios Large & Mid Cap Fund | ~21.06% | Balanced large- and mid-cap mix. |
| Nippon India Growth Mid Cap Fund | ~20.38% | Solid mid-cap with large NAV support. |
| ICICI Pru Focused Equity Fund | ~20.30% | Focused strategy near 20%+ threshold. |
Interpretation: Mid‑cap and focused funds dominated this leaderboard, showing that non‑large‑cap exposures led short‑term alpha.
Where Many Funds Stood (and Underperformed)
Not all schemes produced outsized gains in the past year:
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Kotak Midcap Fund & Kotak Flexicap Fund delivered ~18% returns, respectable but below the >20% group.
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SBI ELSS Tax Saver Fund returned ~12%—highlighting tax‑saving schemes may lag pure growth plays in volatile markets.
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Parag Parikh Flexi Cap Fund produced ~8.4%, and Quant large/mid & multi-cap funds barely moved.
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A few funds actually declined—e.g., Samco Multi Cap, Tata Small Cap, and Quant Mid Cap—signaling risk remains.
Trader signal: Not all equity MFs are equal in short-horizon style, and sector exposure matters more than the headline “equity” label.
What This Means for Portfolios
1. Mid‑cap engines powered the recent rally
Funds with dedicated mid-cap exposures occupied the top positions. This aligns with recent market breadth expansions beyond large caps, as risk‑on sentiment supported nimble mid‑cap names.
2. Returns vary widely—risk matters
While top funds exceeded 20% in just 12 months, many schemes lagged or underperformed. This underscores that equity mutual funds are not homogenous bets particularly over short horizons.
3. Added due diligence improves timing
For tactical allocations or near‑term positions, choosing funds based on return drivers (sector tilt, market cap focus, and management process) is critical. Short‑term performance differences here were decisive.
Investor & Trader Takeaways
✔️ Review exposure: If you hold equity funds expecting >20% in short spans, check if they structurally align with mid‑cap or focused strategies.
✔️ Risk profiling: Funds with lower recent returns or negative performance may still have a place in diversification, but be realistic about objectives.
✔️ Time horizon matters: As mutual funds compound over multi‑year periods, short‑term gains are not guaranteed, but this snapshot shows where performance has clustered lately.
Final Signal
Short‑term equity mutual fund performance in India has bifurcated sharply: select midcap and focused funds delivered 20%+ returns on lumpsum over the last year, while many other categories trailed, making fund‑specific due diligence essential for tactical allocations.
Frequently Asked Questions
Q1: Which equity mutual funds gave over 20% returns in 1 year?
Top-performing funds include ICICI Prudential Midcap Fund (~25.7%), HSBC Midcap Fund (~22.37%), Mirae Asset Midcap Fund (~22.19%), and several focused/midcap schemes. Mid-cap and focused strategies dominated short-term gains.
Q2: Can these high-performing funds guarantee 20% returns next year?
No. Past performance is not a guarantee. Equity markets are volatile, and returns depend on sector rotation, fund strategy, and market cycles.
Q3: Should I switch my existing funds to these top performers?
Only after reviewing your risk profile, investment horizon, and portfolio balance. Mid-cap and focused funds have higher volatility. Tactical switches may help short-term gains but require due diligence.
Q4: Are lumpsum investments better than SIPs for these funds?
For the 1-year period highlighted, lumpsum investments captured peak returns. However, SIPs reduce timing risk and are better for long-term wealth creation.
Q5: How can I track if my fund is performing above 20%?
Check NAV growth over 1 year, compare against category benchmarks, and use mutual fund trackers on platforms like ET Money, Groww, or Moneycontrol.
