An analysis of returns between September 26, 2024, and March 6, 2026 shows that large-cap funds fell an average 6.98%, while flexi-cap funds declined 8.67% on average.
This indicates relatively deeper pressure in the flexi-cap category during the market correction.
The data reflects the impact of a broad market decline that has persisted for nearly 18 months, testing investor portfolios across equity mutual fund categories.
Large-cap funds show relatively contained declines
Among large-cap schemes, Motilal Oswal Large Cap Fund recorded the smallest decline at -1.16% during the period. Other relatively resilient funds included Nippon India Large Cap Fund (-3.71%) and SBI Large Cap Fund (-4.42%).
At the other end, a few schemes saw steeper corrections.
Quant Large Cap Fund posted the sharpest fall at -12.33%, followed by JM Large Cap Fund (-10.83%) and ITI Large Cap Fund (-10.25%).
Top and bottom performers – Large-cap funds
| Best Performing Large-cap Funds | Return |
| Motilal Oswal Large Cap Fund | -1.16% |
| Nippon India Large Cap Fund | -3.71% |
| SBI Large Cap Fund | -4.42% |
| Weakest Performing Large-cap Funds | Return |
| Quant Large Cap Fund | -12.33% |
| JM Large Cap Fund | -10.83% |
| ITI Large Cap Fund | -10.25% |
Overall, the large-cap category showed relatively contained declines compared with flexi-cap funds, reflecting the typically defensive nature of portfolios focused on established companies.
Flexi-cap funds show wider performance divergence
Performance dispersion was significantly higher in the flexi-cap segment, where fund managers have the flexibility to allocate across market capitalisations.
A few schemes managed to deliver marginal gains despite the broader market weakness. HDFC Flexi Cap Fund posted a 0.33% return, while Parag Parikh Flexi Cap Fund rose 0.32% during the same period.
However, several funds in the category recorded double-digit declines.
Samco Flexi Cap Fund fell 23.38%, the steepest drop in the segment, followed by NJ Flexi Cap Fund (-20.66%), Shriram Flexi Cap Fund (-16.90%), JM Flexi Cap Fund (-16.57%), and Quant Flexi Cap Fund (-15.88%).
Top and bottom performers – Flexi-cap funds
| Best Performing Flexi-cap Funds | Return |
| HDFC Flexi Cap Fund | 0.33% |
| Parag Parikh Flexi Cap Fund | 0.32% |
| Weakest Performing Flexi-cap Funds | Return |
| Samco Flexi Cap Fund | -23.38% |
| NJ Flexi Cap Fund | -20.66% |
| Shriram Flexi Cap Fund | -16.90% |
| JM Flexi Cap Fund | -16.57% |
| Quant Flexi Cap Fund | -15.88% |
Category behaviour during market downturns
Large-cap funds typically invest in established companies with relatively stable earnings profiles, which can help limit downside during market corrections. Flexi-cap funds, on the other hand, allow managers to shift allocations across large-, mid-, and small-cap stocks, which can lead to a wider spread of returns.
The data suggests that while both categories faced pressure during the market downturn, flexi-cap funds showed greater variation in performance and deeper average declines.
Market corrections of this nature are often viewed as part of the normal equity cycle. However, analysts note that fund selection, portfolio quality and investment horizon remain key factors when evaluating mutual fund investments.
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