2026 has been one of the hardest years for Indian equity investors in over a decade. The Nifty 50 total return index (TRI) is down 10.9% from 1 January to 30 October, and the Sensex is down 12.6%.
Foreign investors (FIIs) have pulled about Rs 2.5 lakh crore out of Indian shares in the first nine months, and the Sensex and Nifty recorded their weakest nine-month run since 2011.
Against that, 394 of the 547 actively managed equity funds have lost money, and the median fund has lost 4.6%.
But there are some standouts as well which have delivered up to 78% returns in 2026 so far.
Let’s look at the top 5 in more detail.
Please note, we have considered all 1,097 equity schemes and their year-to-date return from 1 January to 30 October 2026 (NAVs of 30 or 31 October).
We have also removed index funds and ETFs, which are passive, leaving 547 active schemes with a 2026 return, and ranked them by that return.
A year when most funds lost money
The table below shows how unusual the top is. Every global fund and every pharma and healthcare fund in the data was positive, and small caps were mostly positive, while large caps, tax-saving funds and value funds almost all lost money.
Only one of 33 large cap funds and two of 40 tax-saving (ELSS) funds are in the green in 2026 so far.
| Category | Funds | Positive | Median return | Best fund | Best return |
|---|---|---|---|---|---|
| Global | 6 | 6 | 17.80% | Nippon India Taiwan Equity Fund | 78.20% |
| Pharma and healthcare | 18 | 18 | 15.20% | Kotak Healthcare Fund | 25.60% |
| Small cap | 33 | 26 | 5.70% | Bank of India Small Cap Fund | 21.30% |
| Focused | 28 | 6 | -5.00% | Motilal Oswal Focused Fund | 18.20% |
| Value | 22 | 2 | -8.00% | LIC MF Value Fund | 10.20% |
| Multi cap | 32 | 12 | -1.10% | Motilal Oswal Multi Cap Fund | 9.30% |
| Mid cap | 31 | 10 | -2.60% | HSBC Midcap Fund | 8.90% |
| Large and mid cap | 33 | 4 | -4.60% | Quant Large and Mid Cap Fund | 5.00% |
| ELSS (tax saving) | 40 | 2 | -6.70% | Motilal Oswal ELSS Tax Saver Fund | 4.60% |
| Flexi cap | 44 | 11 | -3.90% | ITI Flexi Cap Fund | 4.10% |
| Large cap | 33 | 1 | -7.90% | Taurus Large Cap Fund | 2.80% |
Data Source: Ace MF, as of 31 October 2026
Two reasons stand out. Small and midsize companies held up better than large ones because foreign investors, who own mainly large caps, were the main source of exits, while domestic investors kept adding through SIPs.
And pharma held up because exporters earn in dollars, and the rupee touched a record low of 96.38 a dollar in May. Healthcare is also seen as a defensive sector when markets are volatile, and the Nifty Pharma TRI returned 20.1% in the period.
#1 Nippon India Taiwan Equity Fund
The table topper is Nippon’s Taiwan Equity fund. It has returned 78.2%, nearly three times the next best fund of all.
Its benchmark, the TAIEX, gained 56.1% in Taiwan dollars as artificial intelligence hardware drove Taiwanese shares to repeated record highs.
The fund’s return is in rupees and the index’s is in Taiwan dollars, so the 22-point gap cannot be split between stock selection and currency.
What we can say is that the fund is not a copy of the index: Its five largest stocks were MPI, Chroma ATE, WinWay Technology, Asia Vital Components, and Fositek, together about 35% of the portfolio.
Investments in these funds are currently stopped because its overseas funds were close to the limit that applies to the whole fund house, set under RBI and SEBI rules. Only the existing SIPs continue.
Since the day it closed, the NAV has fallen from Rs 33.74 to Rs 29.69, a decline of 12%. The fund also carries a very high risk rating on SEBI’s riskometer and a short track record, having launched in December 2021.
#2 Nippon India Japan Equity Fund
Up 26% and run by the same manager as above, Kinjal Desai, Nippon India Japan Equity Fund is built very differently.
Its largest holding is SoftBank Group at 3.9% as of 30 September, followed by Tokyo Electron, Sumitomo Electric, SMC, and Tokio Marine, each above 3%, and the top ten make up about 32% of the portfolio.
That spread across robotics, electronics, insurance, and industrial companies is far less concentrated than the Taiwan fund.
The fund has been around since August 2014, so it has a long record.
It has the same closure as the Taiwan fund we discussed above, in force since 21 April 2026, so it also cannot take new money.
The fund is also small, at about Rs 3.6 bn AUM, and a 1% exit load applies within a year.
Part of its rupee return comes from the fall in the rupee, which makes overseas assets worth more in rupees.
#3 Kotak Healthcare Fund
Third is Kotak Healthcare Fund.
Up 25.6% against 12.9% for its benchmark, the Nifty Healthcare TRI, a lead of 12.7 percentage points in ten months.
Sun Pharma is its largest stock at about 14% of the portfolio and Divi’s Laboratories is second at about 9%, so two companies are over a fifth of the fund.
It launched in December 2023, so it has under three years of history, and it has a 2.39% base expense ratio on the regular plan.
On the fund’s factsheet, its one-year return to August was 28.2% against 18.5% for the benchmark. That is the kind of result that can come from a few large positions working, and it can reverse as quickly if pharma stock prices fall.
#4 HDFC Pharma and Healthcare Fund
HDFC Pharma and Healthcare Fund is up 22.9%, and by far the largest of the five domestic funds in the pharma group at about Rs 35 bn.
Its largest stocks on 30 September were Divi’s Laboratories (9.4%) and Sun Pharma (8.3%), then Alkem, Cipla, and Apollo Hospitals.
These are the same two names that lead the Kotak fund, which means the two pharma funds in this list are close to the same bet. The fund is managed by Nikhil Mathur and launched in October 2023.
Its record shows how far the ranking depends on the year chosen. The fund returned 8.5% in the 2025-26 financial year, against 28.4% in 2024-25, and 22.9% so far in calendar 2026.
Since launch it has returned 27.8% a year, a figure that comes mainly from a strong run for the pharma sector.
The expense ratio is 2.11% and the exit load is 1% within a year.
#5 Bank of India Small Cap Fund
Last is BOI’s Small Cap fund.
It returned 21.3% while the Nifty Smallcap 250 TRI returned 1.0%, a lead of 20 percentage points.
Its biggest stocks on 30 September were Hero Motors, Sky Gold and Diamonds, City Union Bank, Sterlite Technologies, and Raymond, none above 3%, and the top five are about 13% of the portfolio.
It launched in December 2018 and manages about Rs 36.7 bn under Alok Singh and Nav Bhardwaj. Its expense ratio is 2.17% and it has no exit load.
Its longer record is also strong: 15% over one year, 16.9% over three years and 16.7% over five years, with 24% a year since launch.
A caution applies to the year-to-date number. Small cap funds had a strong 2026 as a category, with 26 of 33 positive, and 24 of 33 beat the index, so a high return here says as much about the segment as about this manager.
What this ranking does not tell you
A year-to-date table is a snapshot of ten months. It ranks funds on one number, and it favours the funds that owned whatever worked this year. But three things are worth adding:
- The top is narrow: Four of the five are a single country or a single sector. The two pharma funds share their two biggest stocks.
- The numbers swing: HDFC Pharma returned 8.5% in the last financial year and 22.9% in 2026 so far. The Taiwan fund is down 12% since its closure. These funds can lose what they gained quickly.
- Young funds: Kotak Healthcare and HDFC Pharma launched in late 2023, so neither has been through a full market cycle.
The next five funds by return
The next five funds by 2026 return are listed below.
| # | Fund | Category | 2026 return |
|---|---|---|---|
| 6 | WOC Pharma and Healthcare Fund | Pharma and healthcare | 21.10% |
| 7 | TRUSTMF Small Cap Fund | Small cap | 20.70% |
| 8 | SBI Healthcare Opportunities Fund (IDCW option) | Pharma and healthcare | 20.30% |
| 9 | Samco Small Cap Fund | Small cap | 19.60% |
| 10 | Bajaj Finserv Healthcare Fund | Pharma and healthcare | 19.60% |
Overall, whatever the year-end ranking shows, the funds at the top of a one-year table are rarely the ones that stay there.
Fund details should be checked on the fund house’s current factsheet before investing.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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