Best Performing Mutual Funds in India in the Last 3 Years (October 2026)
What does "best performing in the last 3 years" mean?
This list ranks mutual funds by one public figure: the return they gave over the last three years, expressed as an annual rate (annualised). A fund that returned 15% a year over three years, for example, grew by about 52% in total.
Three-year returns are easy to compare, but they show only what has already happened. They depend on the period measured, on the category a fund is in, and on the risk it took to earn them.
- Funds compared
- 235
- Highest 3-year return
- 23.70%
- Median 3-year return
- 12.12%
- Categories compared
- 11
Direct plans, as of 30 September 2026
Top funds by 3-year return in India in October 2026
These 10 funds have the highest 3-year annualised return among diversified equity funds, direct plans, that have at least three years of history and at least ₹500 crore in assets. That covers large cap, large & mid cap, mid cap, small cap, multi cap, flexi cap, focused, value, contra, dividend yield and ELSS funds. Sectoral and thematic funds, which invest in a single sector or theme, are not included. The funds are listed from the highest return down, with each fund's category under its name. Tap a fund to see it in the app.
| # | Fund | 1Y return | 3Y return | Expense ratio | Fund size |
|---|---|---|---|---|---|
| 1 |  ITI Small Cap FundSmall Cap | 22.17% | 23.70% | 0.45% | ₹3,603 Cr |
| 2 |  Bandhan Small Cap FundSmall Cap | 12.63% | 23.65% | 0.35% | ₹34,176 Cr |
| 3 |  Invesco India Midcap FundMid Cap | 8.39% | 22.22% | 0.47% | ₹15,905 Cr |
| 4 |  HSBC Midcap FundMid Cap | 17.89% | 22.18% | 0.53% | ₹17,188 Cr |
| 5 | Invesco India Smallcap FundSmall Cap | 15.89% | 21.95% | 0.40% | ₹15,744 Cr |
| 6 |  Bank Of India Small Cap FundSmall Cap | 30.87% | 21.78% | 0.41% | ₹3,307 Cr |
| 7 | Invesco India Large & Mid Cap FundLarge & Mid Cap | 7.61% | 21.49% | 0.54% | ₹12,387 Cr |
| 8 |  Motilal Oswal Large and Midcap FundLarge & Mid Cap | 7.52% | 20.93% | 0.59% | ₹20,159 Cr |
| 9 | Motilal Oswal ELSS Tax Saver FundELSS Tax Saver | 9.51% | 20.56% | 0.63% | ₹5,134 Cr |
| 10 |  WhiteOak Capital Mid Cap FundMid Cap | 12.32% | 20.33% | 0.43% | ₹7,485 Cr |
3-year performers returns calculator
See what an investment in one of these funds would have grown to. Choose a fund, a monthly SIP or a one-time lumpsum, an amount and a period.
Between ₹500 and ₹1,00,000.
- Invested
- Worth
- Total investment
- ₹6,00,000
- Profit
- ₹4,63,827
- Current value
- ₹10,63,827
This fund has generated an XIRR of 23.08% over the past 5 years.
See this fund in the appYear-by-year numbers
| Year | Invested | Worth |
|---|---|---|
| 1 | ₹1,20,000 | ₹1,21,764 |
| 2 | ₹2,40,000 | ₹3,13,145 |
| 3 | ₹3,60,000 | ₹6,59,350 |
| 4 | ₹4,80,000 | ₹7,56,030 |
| 5 | ₹6,00,000 | ₹10,63,827 |
Details of the funds on this list
Let's take a closer look at these funds.
ITI Small Cap Fund
- Fund Performance
- The ITI Small Cap Fund has given 23.70% annualised returns in the past three years and 18.38% in the last five years. In the past year it has returned 22.17%.
- Minimum Investment Amount
- The minimum amount required to invest in ITI Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of ITI Small Cap Fund charges an expense ratio of 0.45% a year, and the fund's size is ₹3,603 Cr.
Bandhan Small Cap Fund
- Fund Performance
- The Bandhan Small Cap Fund has given 23.65% annualised returns in the past three years and 19.52% in the last five years. In the past year it has returned 12.63%.
- Minimum Investment Amount
- The minimum amount required to invest in Bandhan Small Cap Fund via lump sum is ₹1,000 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Bandhan Small Cap Fund charges an expense ratio of 0.35% a year, and the fund's size is ₹34,176 Cr.
Invesco India Midcap Fund
- Fund Performance
- The Invesco India Midcap Fund has given 22.22% annualised returns in the past three years and 18.67% in the last five years. In the past year it has returned 8.39%.
- Minimum Investment Amount
- The minimum amount required to invest in Invesco India Midcap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Invesco India Midcap Fund charges an expense ratio of 0.47% a year, and the fund's size is ₹15,905 Cr.
HSBC Midcap Fund
- Fund Performance
- The HSBC Midcap Fund has given 22.18% annualised returns in the past three years and 17.80% in the last five years. In the past year it has returned 17.89%.
- Minimum Investment Amount
- The minimum amount required to invest in HSBC Midcap Fund via lump sum is ₹5,000 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of HSBC Midcap Fund charges an expense ratio of 0.53% a year, and the fund's size is ₹17,188 Cr.
Invesco India Smallcap Fund
- Fund Performance
- The Invesco India Smallcap Fund has given 21.95% annualised returns in the past three years and 19.45% in the last five years. In the past year it has returned 15.89%.
- Minimum Investment Amount
- The minimum amount required to invest in Invesco India Smallcap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Invesco India Smallcap Fund charges an expense ratio of 0.40% a year, and the fund's size is ₹15,744 Cr.
Bank Of India Small Cap Fund
- Fund Performance
- The Bank Of India Small Cap Fund has given 21.78% annualised returns in the past three years and 20.17% in the last five years. In the past year it has returned 30.87%.
- Minimum Investment Amount
- The minimum amount required to invest in Bank Of India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
- Expense Ratio and Fund Size
- The direct plan of Bank Of India Small Cap Fund charges an expense ratio of 0.41% a year, and the fund's size is ₹3,307 Cr.
Invesco India Large & Mid Cap Fund
- Fund Performance
- The Invesco India Large & Mid Cap Fund has given 21.49% annualised returns in the past three years and 16.35% in the last five years. In the past year it has returned 7.61%.
- Minimum Investment Amount
- The minimum amount required to invest in Invesco India Large & Mid Cap Fund via lump sum is ₹100 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of Invesco India Large & Mid Cap Fund charges an expense ratio of 0.54% a year, and the fund's size is ₹12,387 Cr.
Motilal Oswal Large and Midcap Fund
- Fund Performance
- The Motilal Oswal Large and Midcap Fund has given 20.93% annualised returns in the past three years and 18.35% in the last five years. In the past year it has returned 7.52%.
- Minimum Investment Amount
- The minimum amount required to invest in Motilal Oswal Large and Midcap Fund via lump sum is ₹500 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of Motilal Oswal Large and Midcap Fund charges an expense ratio of 0.59% a year, and the fund's size is ₹20,159 Cr.
Motilal Oswal ELSS Tax Saver Fund
- Fund Performance
- The Motilal Oswal ELSS Tax Saver Fund has given 20.56% annualised returns in the past three years and 16.84% in the last five years. In the past year it has returned 9.51%.
- Minimum Investment Amount
- The minimum amount required to invest in Motilal Oswal ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
- Expense Ratio and Fund Size
- The direct plan of Motilal Oswal ELSS Tax Saver Fund charges an expense ratio of 0.63% a year, and the fund's size is ₹5,134 Cr.
WhiteOak Capital Mid Cap Fund
- Fund Performance
- The WhiteOak Capital Mid Cap Fund has given 20.33% annualised returns in the past three years. In the past year it has returned 12.32%.
- Minimum Investment Amount
- The minimum amount required to invest in WhiteOak Capital Mid Cap Fund via lump sum is ₹500 and via SIP is ₹100.
- Expense Ratio and Fund Size
- The direct plan of WhiteOak Capital Mid Cap Fund charges an expense ratio of 0.43% a year, and the fund's size is ₹7,485 Cr.
How to read 3-year returns
A 3-year return is measured from a start date to today. Move the window by a few months and the order can change, so a fund near the top this month may not be there next month.
Funds in different categories are not like for like. Small cap and mid cap funds often rise to the top after a strong period for smaller companies, and the same funds often fall further when that period ends.
Return is only half the story. A fund that earned a high return with large swings is not the same as one that earned a similar return more steadily. The expense ratio, the size of the fund and how long its manager has run it also matter.
Use a list like this to find funds worth a closer look, not as a reason to buy one.
Who should use a list like this?
A ranking by past return can be a useful starting point for research, as long as you know what it does and does not tell you.
What a ranking by 3-year return does well
- It uses a public, easy-to-check figure, so anyone can see how the order was made.
- Three years is long enough to cover more than one mood of the market.
- It makes funds from different fund houses easy to compare.
- It gives you a short list to research further.
What a ranking by 3-year return leaves out
- Past performance does not predict future returns. A fund at the top can fall behind.
- The funds at the top are often from the same recent winners, such as small cap and mid cap funds, so the list can be concentrated in the more volatile categories.
- High returns often come with high risk. A fund can fall sharply after a strong run.
- A fund's manager or strategy may have changed since the period measured, and many good funds are not on a list of ten.
In short, a ranking by 3-year return tells you which funds did best recently. It is a place to start, not a conclusion.
Who may find this list useful
- Investors who are comparing funds and want a short list to research further.
- Investors who understand that past returns do not guarantee future ones.
- Investors who will also look at risk, cost and category before deciding.
Who should be careful
- Investors who plan to buy the fund at the top simply because it is at the top.
- Investors who need the money within a few years, because even the best-performing equity funds can fall.
- Investors who cannot handle large falls. Many of the funds at the top are among the more volatile ones.
Taxation on these funds
These are diversified equity funds, so they are equity-oriented funds, and your gains are taxed as capital gains, depending on how long you hold the units.
- Short-term capital gains (STCG): if you sell within 12 months, the gain is taxed at 20%.
- Long-term capital gains (LTCG): if you sell after more than 12 months, gains up to ₹1.25 lakh in a financial year are tax-free. Gains above that are taxed at 12.5%.
The ₹1.25 lakh limit applies to all your equity fund and share sales in the year together, not to each fund. Each SIP instalment has its own purchase date, so when you sell, the older instalments are treated as sold first.
Tax rules can change, so check the current rules or ask a tax adviser before you sell.
Frequently asked questions
What is an annualised return?
An annualised return is the yearly rate that would give the same total gain over the period. A 3-year annualised return of 15% means the fund grew as if it had earned 15% each year for three years.
Does a high 3-year return mean a fund will keep performing?
No. Past performance does not indicate future returns. A fund that did well over three years can do worse over the next three, especially if it did well because its category was in favour.
Why are so many small cap and mid cap funds on this list?
Small cap and mid cap funds can rise more than larger companies when markets favour smaller companies, so they often top a ranking by return. They can also fall more when that changes, so a high return in these categories comes with more risk.
How were these 10 funds chosen?
They are the funds with the highest 3-year annualised return among diversified equity funds, direct plans, with at least three years of history and at least ₹500 crore in assets. Sectoral and thematic funds are not included.
How often does the list change?
The list is rebuilt every month from the latest returns. Funds can move up, down, on or off the list from one month to the next.
Should I invest in the fund at the top?
Not only because it is at the top. A ranking by past return does not consider the risk a fund took, its costs or whether it suits your goals and time horizon. Compare it with other funds in its category first.
How are the returns of these funds taxed?
They are taxed as equity funds: 20% on gains from units sold within 12 months, and 12.5% on gains above ₹1.25 lakh in a financial year from units sold after 12 months.
Where can I see how funds compare on more than returns?
Open the Blacklitt app to see how funds in each category rank.
Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
The funds on this page are shown for information and education, with figures as of 30 September 2026. Past performance does not indicate future returns. This is not personalised investment advice or a recommendation to buy or sell any fund, so check that a fund suits your own goals, time horizon and risk appetite, or speak to an adviser, before you invest.
Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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