The size of a mutual fund does not necessarily tell you how well it has performed. Assets under management (AUM) refers to the total value of money managed by a mutual fund scheme on behalf of investors.
Among the 10 largest mutual fund schemes by AUM, performance against their respective benchmarks varies across one-, three-, and five-year periods. While some funds have consistently delivered returns above their benchmarks, others have lagged over certain periods. Here’s what you need to know.
What do the 1-, 3-, and 5-year CAGR returns show?
The comparison below uses the funds’ annualised returns (CAGR) over one, three, and five years against their respective benchmarks.
| Top 10 Mutual Funds | AUM | Benchmark | 1-Yr Returns (%) | Benchmark 1-Yr (%) | 3-Yr Returns (%) | Benchmark 3-Yr (%) | 5-Yr Returns (%) | Benchmark 5-Yr (%) |
| Parag Parikh Flexi Cap Fund | ₹1,47,405 Cr | Nifty 500 TRI | -4.56 | -3.8 | 11.95 | 9.16 | 11.16 | 8.89 |
| HDFC Flexi Cap Fund | ₹1,13,606 Cr | Nifty 500 TRI | -2.77 | -3.8 | 14.19 | 9.16 | 15.53 | 8.89 |
| HDFC Mid Cap Fund | ₹1,08,325 Cr | Nifty Midcap 150 TRI | 3.29 | 2.62 | 15.11 | 13.3 | 17.5 | 14.5 |
| HDFC Balanced Advantage Fund | ₹1,07,296 Cr | NIFTY 50 Hybrid Composite Debt 50:50 Index | -2.61 | -2.65 | 9.94 | 6.05 | 13.17 | NA |
| SBI Liquid Fund | ₹92,192 Cr | NIFTY Liquid Index A-I | 6.47 | 6.40% | 6.89 | 6.91% | 6.34 | 6.30% |
| SBI Aggressive Hybrid Fund | ₹88,668 Cr | NIFTY 50 Hybrid Composite Debt 65:35 Index | 1.64 | -3.96 | 11.25 | 6.1 | 9.14 | NA |
| ICICI Prudential Multi Asset Allocation Fund | ₹87,833 Cr | Composite benchmark | 0.51 | 8.84 | 13.13 | 12.96 | 14.65 | 10.93 |
| Nippon India Small Cap Fund | ₹82,580 Cr | Nifty Smallcap 250 TRI | 7.9 | 4.86 | 14.24 | 13.54 | 18.06 | 14.17 |
| ICICI Prudential Large Cap Fund | ₹80,206 Cr | Nifty 100 TRI | -7.52 | -6.82 | 9.2 | 7.48 | 10.11 | 6.95 |
| HDFC Liquid Fund | ₹71,323 Cr | NIFTY Liquid Index A-I | 6.48 | 6.40% | 6.92 | 6.91% | 6.35 | 6.30% |
*Source: Value Research and NSE, Direct plans, AUM as on 31 August 2026, both benchmark and scheme CAGR as on 1 October 2026. Benchmark returns for HDFC Balanced Advantage Fund, SBI Aggressive Hybrid Fund and liquid funds are as on 30 September 2026; ICICI Prudential Multi Asset Allocation Fund’s benchmark return is as on 31 August 2026. HDFC Balanced Advantage Fund and HDFC Liquid Fund show comparable, not actual, benchmarks.
Note: ICICI Prudential Multi Asset Allocation Fund’s benchmark: Nifty 200 TRI (65%) + Nifty Composite Debt Index (25%) + Domestic Price of Gold (6%) + Domestic Price of Silver (1%) + iCOMDEX Composite Index (3%)
Which mutual funds have beaten their benchmarks most consistently?
HDFC Flexi Cap Fund, HDFC Mid Cap Fund and Nippon India Small Cap Fund have outperformed their respective benchmarks across all three periods—one, three and five years.
HDFC Mid Cap Fund delivered 3.29% over one year, compared with 2.62% for its benchmark. Its three- and five-year CAGR were 15.11% and 17.50%, respectively, against 13.30% and 14.50% for the benchmark.
HDFC Flexi Cap Fund also beat the Nifty 500 TRI across all three periods, with returns of -2.77%, 14.19% and 15.53% over one, three and five years, respectively. However, its one-year return is still negative, despite being better than the benchmark.
Nippon India Small Cap Fund delivered 7.90%, 14.24% and 18.06% over the three periods, against 4.86%, 13.54% and 14.17% for its benchmark.
Among liquid funds, HDFC Liquid Fund is ahead of its comparable benchmark across all three periods.
In the hybrid fund category, HDFC Balanced Advantage Fund marginally beat its comparable benchmark over one year and delivered a higher three-year return. However, its one-year return is still negative at -2.61%.
SBI Aggressive Hybrid Fund outperformed its benchmark over both one and three years. Its one-year return is 1.64%, compared with -3.96% for the benchmark.
What about the other large mutual funds?
Parag Parikh Flexi Cap Fund, the largest scheme by AUM, lagged its benchmark over one year but beat it over three and five years.
ICICI Prudential Large Cap Fund also followed the same pattern, with a one-year return below its benchmark but higher three- and five-year annualised returns.
Among hybrid funds, ICICI Prudential Multi Asset Allocation Fund lagged significantly over one year, returning 0.51% against 8.84%, but is marginally ahead over three years and clearly ahead over five years.
For liquid funds, the differences were much smaller. SBI Liquid Fund is marginally ahead over one year and five years but lagged its benchmark slightly over three years.
The comparison shows that benchmark performance can vary considerably across periods. A fund that lags over one year may still outperform over three or five years, making it important to examine multiple time horizons rather than relying on a single-period return.
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.