The HSBC Midcap Fund topped the three-year and five-year SIP return rankings, delivering 21.2% and 23.6%, respectively. Its alpha stood at 7.7%, compared with 1.55% for the category. Its longer-term record was less consistent, with the fund trailing its benchmark and category for years before pulling ahead from April 2026.
Mid-cap funds deliver strong returns
The Invesco India Mid Cap Fund secured the third spot on the list, ranking second over three years with a 18.9% SIP return and second over five years at 22.7%. It ranked first over 10 years.
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The fund has beaten its benchmark by close to four percentage points a year more often than not, according to the analysis. Its roughly 20% annualised return over a decade has also kept it ahead of the index.
The Axis Multicap Fund, which completed five years this year, also received a five-star rating. It ranked first on three-year SIP returns at 15.2% and remained meaningfully ahead of its category and benchmark, the VR Multicap TRI. Its performance has not relied on any single dominant stock.
| Fund | Category | 3-year SIP return | 5-year SIP return | Key performance highlight |
|---|---|---|---|---|
| Invesco India Large & MidCap Fund | Large & Mid-cap | 17.2% | 20.7% | Ranked 1st over 3 years and 2nd over 5 years |
| HSBC Midcap Fund | Mid-cap | 21.2% | 23.6% | Highest 3-year and 5-year SIP returns; 7.7% alpha |
| Invesco India Mid Cap Fund | Mid-cap | 18.9% | 22.7% | Ranked 1st over 10 years; ~20% annualised return over a decade |
| Axis Multicap Fund | Multicap | 15.2% | — | Ranked 1st on 3-year SIP returns |
| ITI Small Cap Fund | Small-cap | 20.7% | 24.6% | Ranked 1st over 5 years; 10.8% alpha |
Source: Value Research
ITI Small Cap stands out on alpha
The ITI Small Cap Fund, now six years old, ranked second on three-year SIP returns at 20.7% and first on five-year SIP returns at 24.6%.
The fund had trailed its category and benchmark, the BSE SmallCap 250 TRI, for a prolonged period before beginning to pull ahead this year. Its 10.8% alpha was substantially above the category average of 3.3%. It also delivered this performance with lower volatility than both its peers and the index.
How the rating is calculated
The rating combines returns and risk into a quantitative measure. For equity and hybrid funds, the five-year period carries a 60% weight, while the three-year period carries 40%.
Two funds—Edelweiss ELSS Tax Saver Fund and HDFC Value Fund—were upgraded from three to four stars.
A five-star rating, however, is not a standalone investment recommendation. Investors need to consider their risk appetite, investment horizon, budget and broader financial goals before selecting a fund.
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