6 days ago
Alpha Shows Mid-Cap Laggards Trail Small-Cap Fund Performance
Alpha shows how a fund performed compared with its benchmark after considering market risk.
A positive alpha means the fund did better than its benchmark.
A negative alpha means it did worse than its benchmark.
Taurus Mid Cap Fund had the weakest alpha among the listed mid-cap funds, at -5.38%.
UTI Mid Cap Fund and PGIM India Midcap Opportunities Fund also had negative alpha.
Among the listed small-cap funds, Tata Small Cap Fund had the weakest result, at -1.70%.
The average small-cap alpha was higher than the average mid-cap alpha during the measured period.
However, averages can hide large differences between individual funds.
Taurus Mid Cap Fund recorded the lowest mid-cap alpha at -5.38%.
UTI Mid Cap Fund and PGIM India Midcap Opportunities Fund followed at -3.33% and -3.24%.
Tata Small Cap Fund had the lowest small-cap alpha at -1.70%.
SBI Small Cap Fund and Kotak Small Cap Fund recorded alphas of -1.20% and -0.72%.
The average alpha was 1.15% for mid-cap funds and 2.89% for small-cap funds.
- Who
- The analysis covers mid-cap and small-cap mutual funds, including Taurus Mid Cap Fund, UTI Mid Cap Fund, PGIM India Midcap Opportunities Fund, Tata Small Cap Fund, SBI Small Cap Fund and Kotak Small Cap Fund.
- What
- Value Research data compares the funds’ three-year, benchmark-adjusted alpha performance.
- Where
- When
- The data was stated to be as of 31 July 2026, using calendar-month returns over the previous three years.
- Why
- The comparison shows which funds underperformed their benchmarks and how the two fund categories performed on average.
Category-Level Interpretation
Fund-Level Interpretation
Average performance
Category-Level Interpretation
The small-cap category had a higher average alpha of 2.89%, compared with 1.15% for mid-cap funds, indicating greater average excess returns after adjusting for market risk during the period.
Fund-Level Interpretation
Category averages do not represent every fund; individual schemes in both categories recorded negative alpha.
Meaning of negative alpha
Category-Level Interpretation
A negative alpha indicates underperformance against a benchmark after adjusting for market risk, rather than necessarily indicating a negative absolute return.
Fund-Level Interpretation
The size of the negative alpha matters at the fund level: Taurus Mid Cap Fund’s -5.38% was substantially more negative than the listed small-cap laggards’ figures.
Key facts
- Funds covered
- 33 mid-cap funds and 36 small-cap funds were listed in the latest AMFI July 2026 data.
- Mid-cap alpha leader among laggards
- Taurus Mid Cap Fund: -5.38%.
- Other notable mid-cap alphas
- UTI Mid Cap Fund: -3.33%; PGIM India Midcap Opportunities Fund: -3.24%.
- Small-cap alpha leader among laggards
- Tata Small Cap Fund: -1.70%.
- Other notable small-cap alphas
- SBI Small Cap Fund: -1.20%; Kotak Small Cap Fund: -0.72%.
- Category-average alpha
- Mid-cap funds: 1.15%; small-cap funds: 2.89%.
- Methodology
- Alpha was calculated using calendar-month returns for the last three years, based on direct plans and Value Research data as of 31 July 2026.
Sources
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