The number
Over the three years to 19 October 2026, the median small-cap fund suffered a worst peak-to-trough fall of 24.1%. The median large-cap fund's worst fall was 16.4%. Between them sit eight other equity categories, and one of them, sectoral and thematic, contains a fund whose worst fall was 41.9%.
The measure is the "max drawdown" in the three-year window on each fund page: the biggest drop from a previous NAV high to a later low, found by scanning daily NAVs. It does not say how long the fund took to come back, and it does not care where the window ends. A fund that fell 24% in March and has since recovered shows the same figure as one still down.
The sample is Direct plan, Growth option, open-ended funds with at least three years of NAV history. ETFs, segregated portfolios and IDCW plans are left out.
By category
| Category | Funds | Median worst fall | Worst single fund | Mildest single fund | Median volatility | Median 3-year return |
|---|---|---|---|---|---|---|
| Small Cap | 26 | -24.1% | -30.9% | -18.2% | 16.9% | 13.4% |
| Sectoral / Thematic | 142 | -21.3% | -41.9% | -13.5% | 15.7% | 12.7% |
| Mid Cap | 29 | -21.2% | -28.9% | -16.8% | 16.4% | 15.0% |
| Multi Cap | 23 | -19.8% | -25.3% | -15.1% | 15.2% | 12.8% |
| ELSS | 48 | -18.8% | -29.6% | -14.7% | 14.5% | 9.7% |
| Large & Mid Cap | 26 | -18.7% | -26.1% | -14.2% | 15.1% | 12.1% |
| Flexi Cap | 37 | -18.2% | -26.7% | -11.0% | 14.3% | 11.2% |
| Value | 21 | -18.0% | -26.1% | -13.7% | 14.2% | 10.9% |
| Focused | 27 | -17.8% | -31.3% | -12.9% | 14.6% | 11.5% |
| Large Cap | 30 | -16.4% | -21.1% | -13.3% | 13.5% | 9.2% |
Volatility is the annualised standard deviation of daily returns over the same three years, and the return is the annualised three-year figure.
What the table shows
The order of falls follows the order of volatility. The two columns rank almost identically: small caps are the most volatile at 16.9% and fall the furthest, large caps the least at 13.5% and fall the least. The gap between the extremes is 7.7 percentage points of worst fall.
The ranges overlap. The mildest small-cap fund, at -18.2%, fell less than the median ELSS fund (-18.8%) and about as much as the median flexi-cap (-18.2%). The worst large-cap fund, at -21.1%, fell more than the median multi-cap fund did (-19.8%). Category sets an expectation; the spread inside it is wide. The Focused category runs from -12.9% to -31.3%, an 18.4-point range among 27 funds.
Thematic funds hold the extremes. With 142 funds the sectoral and thematic group has the widest range, from -13.5% to -41.9%. These funds are a mix of single-sector and single-theme portfolios, so the median hides what any one of them did.
Return and fall do not move one for one. Mid caps had the best median three-year return, 15.0%, with a median fall of 21.2%, less than the small-cap fall for a higher return. Large caps had the shallowest fall and the lowest return, 9.2%. ELSS funds, at 9.7%, also trailed the field while falling 18.8%. Three years is one window, and it contains the 2026 sell-off; another window would reorder some rows.
Recovery arithmetic
A fall needs a larger rise to undo. The median small-cap fall of 24.1% leaves the NAV at 75.9% of its peak, and getting back needs a gain of 31.7%. For the median large-cap fall of 16.4% the required gain is 19.6%. A 41.9% fall needs 72.1%. These are the plain arithmetic of percentages, not a forecast of how long any recovery takes.
Method and caveats
- Figures are the worst fall inside each fund's own trailing three-year window, taken from NAVs to 19 October 2026.
- Categories with fewer than ten qualifying funds are left out.
- A fund's drawdown is on NAV, so dividends in IDCW plans do not distort it; those plans are excluded anyway.
- The page for each fund shows the same measure; the screener lets you sort a category by it.
For how falls differ by market direction, see upside and downside capture by category and beta by category. For one category in depth, see small-cap fund drawdowns in 2026.
Frequently asked questions
What does the worst 3-year fall on a fund page mean?
It is the largest peak-to-trough drop in a fund's NAV inside the trailing three years. If the NAV climbed to 100, slid to 76 and only then recovered, the figure is minus 24%, however it ends the window.
Which equity category had the deepest median fall?
Small Cap, at minus 24.1% across 26 Direct Growth funds with three years of history. Sectoral and thematic funds followed at minus 21.3%, and mid caps at minus 21.2%.
Is a shallower fall the same as a better fund?
No. Large caps had the shallowest median fall, 16.4%, and also the lowest median three-year return of the ten categories, 9.2% a year. Depth of fall is one number, to be read next to the return.
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.
Keep reading
Worst fall in three years: 12 equity categories ranked
The median large cap fund fell 16.4% peak to trough in three years, the median small cap fund 24.1%. Only 24 of 420 equity funds fell less than 15%.
Best large-cap fund's year trails the median small cap
To 19 October 2026 the best large-cap fund returned 4.4% in a year; the median small-cap fund 7.9%. One-year return ranges for 11 equity categories.
Best versus worst fund in a category, each year 2021–25
In 2021 small-cap funds ranged from 34.9% to 91.7%, a 56.8-point gap. In 2025 large-cap funds ranged only 6.7 points. The gap in nine categories, five years.