Picking the best mutual fund for your portfolio has never been harder. There are over 1,500 schemes out there. And every fund house is competing for your attention.
If you’ve spent any time on financial Twitter or YouTube, you already know that everyone has an opinion. So how do you actually separate the good funds from the ones that are just noise?
Every few months, we run through hundreds of mutual fund schemes and crunch the numbers in our proprietary software to figure out which funds are worth your time.
When we dug into the hundreds of schemes this year after putting them through a proper filter of rolling returns over 6 months, 1 year, 3 years, and 5 years, and risk-reward metrics like Sharpe, Sortino, standard deviation, and up/down capture ratio, only a select few made the cut.
Here are the top five from the list that survived all our filters.
#1 HDFC Flexi Cap Fund
First on the list is HDFC Flexi Cap Fund.
Recently, this fund crossed Rs 1 trillion (tn) in assets under management (AUM).
This, at a time when the fund is going through a fund manager shift. It recently bought stake worth over Rs 10 billion (bn) in HDFC Bank during the March 2026 sell-off.
Over the years, the fund has proved to be one of the best in terms of generating consistent returns in its category. On a rolling returns basis, the fund has managed to deliver over 19% returns during any three or five year periods.
In fact, this fund has generated a 13.62% annual return in 70% of times for investors holding for at least 5 years.
The fund has a Sharpe ratio of 0.34, while its Sortino ratio is 0.63 compared to the benchmark average of 0.33.
This makes it one of the best in terms of protecting gains during volatility.
| HDFC Flexi Cap Fund Key Details | |
| AUM (Fund size) | ₹1,00,479 Cr |
| Exit load | 1.0%info |
| Lock-in Period | Nil |
| Age | 31 yrs 5 m since Dec 08, 1994 |
| Benchmark | NIFTY 500 TRI |
| Min. investment | SIP: ₹3000 & Lumpsum: ₹5000 |
| Expense ratio | 1.27% as on Apr 30, 2026 |
| Plan type | Regular |
| Risk | Very High |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
| Source: Factsheets, media reports | |
ICICI Bank, Axis Bank, HDFC Bank, and SBI are currently its top holdings.
Overall, the fund has majority of its AUM spread across Financial, Automobile, Healthcare, and IT sectors.
Going forward, investors should see whether the fund has the ability to deliver consistent returns in-line with most funds of its category, given its ability to control losses in a falling market.
#2 Bandhan Large & Mid Cap Fund
Second on the list is Bandhan Large & Mid Cap fund.
This fund follows three important points in terms of how it’s managed: dynamism, anti fragility, and it follows the macro story.
It does not buy and hold and is confident about its stock rotation strategy. It doesn’t bet much on anything following the top down approach.
It has generated the highest return among all Large & Mid Cap funds in its category, in the last 10 years. Over any three year rolling period, the fund has generated 24.2% returns compared to the category average of 17.7%.
Over one year, it generated 9.27%. Since launch, it has delivered 15.68% CAGR.
| Bandhan Large & Mid Cap Fund Key Details | |
| Expense ratio | 1.29% as on Apr 30, 2026 |
| Exit load | 1.0%info |
| AUM (Fund size) | ₹16,672 Cr |
| Lock-in Period | Nil |
| Age | 13 yrs 4 m since Jan 01, 2013 |
| Benchmark | Nifty Large Midcap 250 TRI |
| Min. investment | SIP: ₹500 & Lumpsum: ₹1000 |
| Risk | Very High |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
The scheme has shown an ability to deliver returns consistently than most funds in its category.
The fund has the majority of its AUM invested in Financial, Services, Energy, Capital Goods, and Healthcare sectors.
The fund’s top 5 holdings are HDFC Bank, One97 Communications, Axis Bank, ICICI Bank, and Reliance Industries.
It remains to be seen how the fund performs given its ability to fall less in falling markets, which would be crucial.
#3 Nippon India Large Cap Fund
Third on the list is Nippon India Large Cap fund.
With over Rs 370 bn in AUM, it’s one of the biggest funds in the category.
The fund has given an average 15.43% in terms of rolling returns in any 7-year period over the last 10 years, beating both category average and the Nifty 100. This suggests it hasn’t just seen good phases but has also delivered steadily.
That kind of consistency usually points to solid stock picking and a well-run portfolio.
The credit to this solid track record and a part of it goes to the fund’s manager. He has been managing the scheme since the fund’s inception in 2007.
| AUM (Fund size) | ₹51,690 Cr |
| Exit load | 1.0% |
| Lock-in Period | Nil |
| Age | 18 yrs 11 m since Jun 12, 2007 |
| Benchmark | BSE 100 TRI |
| Min. investment | SIP: ₹3000 & Lumpsum: ₹5000 |
| Expense ratio | 3.51% as on Apr 30, 2026 |
| Plan type | Regular |
| Risk | Very High |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Since launch, it has delivered 12.18% average annual returns.
The fund has the majority of its AUM invested in Financial, Services, Energy, Consumer Staples, Healthcare sectors.
The fund’s top 5 holdings are in HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Axis Bank Ltd., Bajaj Finance Ltd.
Going forward, investors should track its ability to control losses in a falling market.
#4 HDFC Mid Cap Fund
Fourth on the list is HDFC Mid Cap Fund.
HDFC Mid-Cap Fund has been a long-time favourite among investors in the mid-cap space. With a solid long-term track record and consistent SIP performance, many see it as a dependable option in a volatile category.
A Rs 10,000 monthly SIP started 10 years ago in this fund has grown to around Rs 3.5 m on a total investment of 1.2 m, delivering 20.64% annualized returns. Over the past 5 years, the fund’s AUM has nearly tripled from Rs 250 bn to over Rs 750 bn.
This fund is managed by Chirag Setalvad, one of the most respected names in the mutual fund industry. He has been managing the fund right from the start and is known for his consistent and research-driven investment style. He’s supported by Dhuv Muchal as co-fund manager.
| HDFC Mid Cap Fund Key Details | |
| AUM (Fund size) | ₹94,745 Cr |
| Exit load | 1.0%info |
| Lock-in Period | Nil |
| Age | 19 yrs since May 07, 2007 |
| Benchmark | NIFTY Midcap 150 TRI |
| Min. investment | SIP: ₹3000 & Lumpsum: ₹5000 |
| Expense ratio | 1.37% as on Apr 30, 2026 |
| Plan type | Regular |
| Risk | Very HighVery High Risk |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
The fund’s returns for the last year stand at 7.67%. Since launch, it has delivered 17.05% average annual returns.
HDFC Mid Cap Fund scheme’s ability to deliver returns consistently is in-line with most funds of its category.
The fund has the majority of its AUM invested in Financial, Healthcare, Automobile, Services, Consumer Staples sectors. It has taken less exposure in Financial and Healthcare sectors compared to other funds in the category.
The fund’s top 5 holdings are in Max Financial Services, AU Small Finance Bank, The Federal Bank, Glenmark Pharmaceuticals, and Indian Bank.
It remains to be seen whether its top holdings perform as they’ve done in the past and delivere benchmark beating returns.
#5 Invesco India Smallcap Fund
Last on the list is Invesco India Smallcap Fund.
This fund’s small-cap investing strategy has helped deliver strong long-term returns of close to 20% in terms of CAGR in multiple overlapping periods.
In terms of rolling returns, the fund has given 26% returns over any three year period.
Over 5 years and 7 years, the picture remains decent at 24% returns.
| Invesco India Smallcap Fund Key Details | |
| AUM (Fund size) | ₹11,038 Cr |
| Exit load | 1.0%info |
| Lock-in Period | Nil |
| Age | 7 yrs 7 m since Oct 10, 2018 |
| Benchmark | BSE 250 SmallCap TRI |
| Min. investment | SIP: ₹3000 & Lumpsum: ₹5000 |
| Expense ratio | 1.93% as on Apr 30, 2026 |
| Plan type | Regular |
| Risk | Very HighVery High Risk |
| Short term capital gains (STCG) | Returns taxed at 20% if you redeem before 1 year |
| Long term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Since launch, it has delivered 21.03% average annual returns.
The fund has majority of its AUM invested in Services, Healthcare, Financial, Automobile, and Consumer Discretionary sectors.
Its top 5 holdings are Amber Enterprises, Sai Life Sciences, Max Healthcare Institute, Interglobe Aviation, and Krishna Institute of Medical Sciences.
Going forward, investors should watch how the fund managers identify high-growth companies early, focus on earnings growth, and use bottom-up stock picking to capture market cap transitions.
Conclusion
The five funds we just discussed have earned their spot based on cold, hard numbers in terms of rolling returns, risk metrics, and consistency across multiple timeframes.
But markets shift, fund managers change, and past performance doesn’t guarantee future results.
Investors should select mutual funds that fit their risk appetite and time horizon, not the one that topped last year’s return chart.
And if you’re using SIPs, stay the course. Most of the wealth created in mutual funds don’t happen in a single year. It accumulates quietly, over time.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
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…
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary