2 days ago
Five Diversified Equity Funds Outperform Their Category Averages
The article compares diversified equity mutual funds using two measures.
The first measure is how much money each fund made over three years.
ITI Small Cap Fund had the highest return at 25.31%.
The second measure is alpha, which shows whether a fund did better than its benchmark after considering risk.
ITI Small Cap also had the highest alpha, at 10.83%.
Bandhan Small Cap appeared in both top-five lists.
The other three return leaders did not rank among the five highest-alpha funds, but their alpha was still above their category averages.
Looking at both returns and alpha gives investors a broader way to compare funds.
ITI Small Cap Fund led three-year returns at 25.31%, followed by Bandhan Small Cap Fund at 25.26%.
Invesco India Mid Cap, HSBC Midcap and Invesco India Small Cap returned 24.00%, 23.80% and 23.54%, respectively.
ITI Small Cap had the highest three-year alpha at 10.83%, ahead of Motilal Oswal Large and Midcap at 10.79%.
Bandhan Small Cap also ranked among the top five for alpha, while Invesco India Large & Mid Cap and Axis Multicap completed that list.
All five funds leading the three-year return ranking had alpha above their respective category averages.
- Who
- The five leading diversified equity funds by three-year returns, including ITI Small Cap Fund and Bandhan Small Cap Fund.
- What
- The funds were compared by three-year returns and alpha, a risk-adjusted measure of performance relative to a benchmark.
- Where
- Across the diversified equity mutual fund category.
- When
- Three-year returns were measured as of 24 September 2026; alpha data was as of 31 August 2026.
- Why
- To show which funds delivered strong returns and also exceeded their category-average alpha.
Key facts
- Top three-year performer
- ITI Small Cap Fund, with a 25.31% return
- Second-highest return
- Bandhan Small Cap Fund, with a 25.26% return
- Highest alpha
- ITI Small Cap Fund, with alpha of 10.83%
- Return-ranking source
- Value Research; direct plans; returns as of 24 September 2026
- Alpha-ranking source
- Value Research; direct plans; data as of 31 August 2026
- Alpha calculation
- Calculated using calendar-month returns for the last three years
- Category-average alpha
- 1.55% for Invesco India Mid Cap's category and 3.34% for Invesco India Small Cap's category
Sources
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