Equity mutual funds: September 2026 returns—how did large, mid, small and flexi-cap fare over 3, 5 and 10 years?
For mutual fund investors, September 2026 offered a useful reminder of why fund performance needs to be viewed against the right benchmark and across multiple time periods.
While mid-cap and large-cap funds faced a sharp correction during the month, the longer-term performance of mid- and small-cap benchmarks remained stronger than that of the large-cap benchmark.
For investors evaluating their mutual funds, benchmark returns provide a reference point to understand how a fund has performed relative to its underlying market segment.
Large-cap funds are compared with the Nifty 100 TRI, mid-cap funds with the Nifty Midcap 150 TRI, small-cap funds with the Nifty Smallcap 250 TRI, while the Nifty 500 TRI is used as a broad benchmark for flexi-cap funds.
How do the mutual fund category benchmarks perform across different time periods?
| Mutual fund category | Benchmark | 1-month | 3-Year | 5-Year | 10-Year |
| Large-cap | Nifty 100 | -5.9% | 7.8% | 7.1% | 11.7% |
| Mid-cap | Nifty Midcap 150 | -7.1% | 13.7% | 14.8% | 16.6% |
| Small-cap | Nifty Smallcap 250 | -3.1% | 14.0% | 14.5% | 14.6% |
| Flexi-cap | Nifty 500 | -5.8% | 9.5% | 9.0% | 12.8% |
Source: Capitalmind Mutual Fund. TRI benchmark returns include both price changes and dividends. CAGR as on 30 September 2026
The Nifty Midcap 150 recorded the steepest decline in September, falling 7.1%. The Nifty 100 declined 5.9%, while the Nifty 500 fell 5.8%. The Nifty Smallcap 250 was relatively more resilient, declining 3.1%.
Value Research’s September 2026 category averages show that all four equity mutual fund categories ended the month in the red. Mid-cap funds fell 6.72%, followed by large-cap at 5.83%, flexi-cap at 5.23% and small-cap at 2.71%.
Compared with their respective benchmarks, all four categories recorded slightly smaller declines during the month.
What do long-term data show?
However, the longer-term numbers present a different picture. Over a 3-year period, the small-cap category benchmark led with a CAGR return of 14%, followed by mid-cap at 13.7%, flexi-cap at 9.5% and large-cap at 7.8%.
The gap became more visible over five years. Mid-cap led with a CAGR of 14.8%, narrowly ahead of small-cap at 14.5%. Flexi-cap followed at 9%, while large-cap trailed at 7.1%.
Over 10 years, mid-cap remained the leader, delivering an annualised 16.6% return, followed by small-cap at 14.6%, flexi-cap at 12.8% and large-cap at 11.7%.
Overall, the data show that the mid-cap category delivered the highest return among the four categories across the 5- and 10-year periods, while small-cap led over 3 years.
However, benchmark performance does not necessarily translate into the same returns for every scheme, as active funds can differ based on their portfolio choices and fund manager decisions.
However, passive funds such as index funds and ETFs that track these benchmarks generally deliver returns in line with these underlying indices.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
