Equity funds performance: Quant Small Cap tops 10-year SIP returns at over 25%; Sundaram Value trails

Equity funds performance: Quant Small Cap tops 10-year SIP returns at over 25%; Sundaram Value trails. (AI-generated image)AI Quick ReadEquity mutual funds offer investors exposure to multiple stocks through a single mutual fund scheme. Depending on the category and investment mandate, these funds can invest across large-cap, mid-cap and small-cap stocks, or follow strategies focused on value, contrarian, sectors or themes.

According to the latest data from the Association of Mutual Funds in India (AMFI) for July 2026, there are 573 schemes in the equity fund category. Sectoral and thematic funds account for the largest share, with 251 schemes.

When diversified equity funds (excluding sectoral/ thematic funds) are compared based on their 10-year SIP returns, small-cap and mid-cap funds feature prominently among the top performers, according to Value Research data.

Small-cap and mid-cap funds dominated the list of equity schemes with the highest 10-year SIP returns. Quant Small Cap Fund topped the list with a 10-year SIP return of 25.91%.

*Source: Value Research, Direct Plans, Returns as on 26 August 2026, Only diversified equity funds are considered

It was followed by Nippon India Small Cap Fund, which delivered a 22.64% SIP return over the same period. Invesco India Mid Cap Fund ranked third, with a 10-year SIP return of 22.19%.

Edelweiss Mid Cap Fund and Quant ELSS Tax Saver Fund completed the top five, delivering SIP returns of 21.74% and 21.73%, respectively.

The presence of small-cap and mid-cap funds among the top performers highlights how different segments of the equity market can contribute to long-term portfolio returns.

However, these categories can also carry higher volatility compared with large-cap funds, and investors should not select funds solely on the basis of past returns.

At the other end of the list, some diversified equity funds delivered considerably lower 10-year SIP returns.

*Source: Value Research, Direct Plans, Returns as on 26 August 2026, Only diversified equity funds are considered

Sundaram Value Fund recorded the lowest return among the funds highlighted, at 10.63%.

Value funds typically invest in stocks that the fund manager believes are trading below their intrinsic or fair value, with the expectation that their prices may appreciate as the market recognises their underlying worth.

It was followed by LIC MF Large Cap Fund, with a 10-year SIP return of 10.89%, and PGIM India Large Cap Fund, at 11.12%.

Out of the five underperforming funds, two belong to the large-cap category.