A falling index, a mostly better fund
The Nifty 50 is down 12.4% in 2026 to 19 October, from 26,129.60 to 22,888.95 (our separate post has the year-by-year comparison). The funds that try to beat it have done much better than the index, almost without exception.
We looked at every Direct Growth equity fund with a year-to-date return on 19 October 2026: 556 funds. Funds launched this year have no full year-to-date figure and are left out; plans with IDCW options and segregated portfolios are excluded. For a fair yardstick, Nifty 50 index funds, which include dividends and small fees, show about −11.8%.
- 549 of 556 have fallen by less than 12.4%.
- Only 7 have fallen by more.
- 216 (39%) are up for the year, and 60 are up 10% or more.
- The median fund is −2.4%.
By category
| Category | Funds | Median 2026 return | Positive | Best | Worst |
|---|---|---|---|---|---|
| Small Cap | 33 | +10.9% | 32 | +28.9% | −2.6% |
| Mid Cap | 31 | +0.2% | 17 | +10.9% | −5.5% |
| Multi Cap | 32 | 0.0% | 16 | +11.5% | −6.8% |
| Large & Mid Cap | 33 | −2.7% | 7 | +7.6% | −10.8% |
| Flexi Cap | 43 | −3.1% | 13 | +6.4% | −10.2% |
| Focused | 28 | −3.7% | 9 | +20.3% | −13.5% |
| ELSS | 49 | −3.9% | 12 | +8.6% | −11.7% |
| Dividend Yield | 10 | −5.4% | 2 | +1.6% | −9.5% |
| Value | 22 | −5.6% | 6 | +14.2% | −11.5% |
| Contra | 3 | −7.0% | 0 | −6.0% | −8.5% |
| Large Cap | 33 | −7.5% | 2 | +3.3% | −10.9% |
| Sectoral / Thematic | 239 | −2.0% | 100 | +82.8% | −19.5% |
Two things stand out. Small caps are the only group where nearly every fund is positive: 32 of 33. And large cap funds are the weakest diversified group, with a median of −7.5% and only two of 33 in positive territory. A large cap fund holds mostly the same kind of stocks as the Nifty 50, so it is the group most exposed to what hit the index, yet even its median is nearly five points better. Our large cap and small cap posts have the one, three and five-year numbers.
The seven that fell further
| Fund | Category | 2026 so far |
|---|---|---|
| ICICI Prudential FMCG Fund | Sectoral/Thematic | −19.5% |
| Bandhan Multi-Factor Fund | Sectoral/Thematic | −15.5% |
| Tata Digital India Fund | Sectoral/Thematic | −14.1% |
| Taurus Infrastructure Fund | Sectoral/Thematic | −14.1% |
| Franklin India Focused Equity Fund | Focused | −13.5% |
| SBI Consumption Opportunities Fund | Sectoral/Thematic | −13.2% |
| SBI Quant Fund | Sectoral/Thematic | −13.1% |
Six of the seven are concentrated in a sector or a theme. The FMCG fund tracks a corner of the market: the Nifty FMCG index fell 9.8% in the three months to 19 October. The only diversified fund in the list is a focused one, which holds a small number of stocks.
Among the 317 diversified funds, large through small cap, ELSS, focused, value, contra and dividend yield, just one is below the Nifty 50 index funds' −11.8%.
Why most funds did better than the index
Three things are visible in the data:
- Mid and small caps held up. The median small cap fund is up 10.9% while the large-cap-heavy Nifty 50 fell. Funds with a mid or small cap tilt were helped.
- Funds are not the index. A flexi cap or multi cap fund can hold cash, other sectors and stocks outside the Nifty 50.
- Sector funds carry both tails. The sectoral group has both the best fund (+82.8%, a Taiwan equity fund) and the worst (−19.5%).
An index fund is built to match the index, so its return is the benchmark by design. Active funds that sit above it this year carry a different mix of risks, and that mix can work against them in another year. Our post on how many funds beat their index each year shows that most funds do not beat the index in most years.
Caveats
The yardstick is a price index. The Nifty 50's 12.4% excludes dividends. Against Nifty 50 index funds at about −11.8% the count of funds below it rises from 7 to 8.
Year-to-date is one window. A different start date gives a different ranking, as our look at last year's top-quarter funds shows.
Returns are not recommendations. Nothing here says a fund is good to hold or to sell.
Frequently asked questions
How many equity funds have beaten the Nifty 50 in 2026?
Of 556 Direct Growth equity funds with a 2026 year-to-date return on 19 October 2026, 549 have fallen by less than the Nifty 50's 12.4% price decline, and 7 have fallen by more. Of 317 diversified equity funds, excluding sectoral and thematic funds, only one has fallen more than the Nifty 50 index funds' roughly 11.8%.
Are equity funds up this year?
Some are. 216 of the 556 funds (39%) have a positive return for 2026 so far, and 60 are up 10% or more. The median fund is down 2.4%. Small cap funds are the strongest group: 32 of 33 are positive, with a median of +10.9%.
Which funds have fallen more than the Nifty 50?
ICICI Prudential FMCG (−19.5%), Bandhan Multi-Factor (−15.5%), Tata Digital India (−14.1%), Taurus Infrastructure (−14.1%), Franklin India Focused Equity (−13.5%), SBI Consumption Opportunities (−13.2%) and SBI Quant (−13.1%). Six of the seven are sectoral, thematic or factor funds.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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