The number
Between January and June 2026, 22 actively managed equity funds published their first Direct-plan NAV. By 1 October 2026, 16 of them had done better than the Nifty 500 since that first day, and 11 were showing a gain.
That sounds like a good start for new funds. Measured against the right yardstick, it is much less clear.
Ten diversified launches
These are the new funds in the broad categories: large, mid, small, flexi, large-and-mid and dividend yield. Each is compared, over its own dates, with the median of the older funds in its category (those with a record from before 2025) and with the Nifty 500.
| Fund | First NAV | Since then | Older funds in category | Nifty 500 |
|---|---|---|---|---|
| Groww Small Cap | 2 Feb | +28.51% | +16.69% | −4.29% |
| Abakkus Small Cap | 20 Mar | +22.38% | +24.35% | +2.48% |
| The Wealth Company Small Cap | 30 Mar | +17.82% | +27.72% | +6.48% |
| TRUSTMF Mid Cap | 24 Mar | +16.08% | +11.51% | +3.75% |
| Samco Mid Cap | 13 Feb | −1.94% | +2.25% | −6.24% |
| Old Bridge Flexi Cap | 4 Mar | +8.79% | +3.61% | −2.46% |
| The Wealth Company Large & Mid Cap | 12 Jun | −2.53% | −0.83% | −3.28% |
| JioBlackRock Large Cap | 16 Apr | −7.02% | −3.43% | −3.52% |
| Kotak Dividend Yield | 3 Feb | −8.65% | −6.18% | −6.78% |
| Parag Parikh Large Cap | 6 Feb | −9.73% | −7.14% | −6.73% |
Returns are not annualised; every window ends on 1 October 2026. Bold marks the three funds ahead of their category's older funds.
Against the Nifty 500, seven of ten look good. Against their own category, seven of ten are behind. The difference is the small-cap rally. From 2 February to 1 October the Nifty Smallcap 250 rose 13.43% while the Nifty 500 fell 4.29%. Every new small-cap fund rode that; only Groww's beat the older small-cap funds over its window. Abakkus trailed them by about two points and The Wealth Company by almost ten.
At the other end, the three new large-cap and large-and-mid-cap funds all trailed their older peers, by 1.70 to 3.59 points.
Twelve thematic launches
Half the new active equity funds were sectoral or thematic. A theme fund should be judged against its theme, so each one below is set against the NSE index closest to it, or the Nifty 500 where the theme is broad.
| Fund | First NAV | Since then | Its index | Index return |
|---|---|---|---|---|
| Motilal Oswal Financial Services | 20 Feb | +2.99% | Nifty Financial Services | −12.95% |
| SBI Quality | 23 Feb | +4.94% | Nifty 500 | −6.93% |
| Mahindra Manulife Innovation Opportunities | 2 Feb | +4.95% | Nifty 500 | −4.29% |
| Kotak Services | 2 Mar | −0.26% | Nifty Services Sector | −9.44% |
| LIC MF Technology | 19 Mar | +8.05% | Nifty IT | −0.96% |
| WhiteOak Capital Consumption Opportunities | 11 Feb | −1.22% | Nifty India Consumption | −9.57% |
| ITI Business Cycle | 12 Mar | +4.62% | Nifty 500 | −0.18% |
| Edelweiss Financial Services | 18 Feb | −10.80% | Nifty Financial Services | −13.73% |
| Canara Robeco Banking and Financial Services | 23 Mar | +5.06% | Nifty Financial Services | +2.49% |
| Baroda BNP Paribas ESG Best-in-Class Strategy | 6 Mar | −2.03% | Nifty 500 | −2.77% |
| JioBlackRock Sector Rotation | 19 Feb | −5.67% | Nifty 500 | −6.18% |
| Bank of India Banking & Financial Services | 2 Feb | −8.49% | Nifty Financial Services | −8.37% |
Eleven of the twelve are ahead of their index; Bank of India's trails it by 0.12 of a point. Motilal Oswal's financial services fund is up 2.99% in a stretch when the sector index lost 12.95%.
Two cautions before reading much into it. These are price indices, so they leave out dividends, which over seven or eight months are worth well under one point. And a theme fund need not hold only its theme's largest stocks; any mid- or small-cap tilt would have helped in a year when smaller companies ran ahead.
Why a few months says so little
- The windows are short. The longest here is eight months. A fund's first year mostly shows what its category and its style did, not whether its manager is any good.
- New funds start in cash. The money raised in the offer is invested over the first weeks. In a rising market that drags; in a falling one it cushions. Either way, it is not skill.
- Small funds move more. A fund of a few hundred crore can take bigger positions in smaller stocks than an established one can. That works both ways.
Of the 22 new funds, 12 were thematic. That fits the year as a whole: our September NFO round-up counted 17 sectoral or thematic funds among 36 active equity launches from January to September, and more new index funds (41) than active equity ones.
Where to go from here
- Before buying into any new offer, read our checklist on whether to invest in an NFO.
- To compare a new fund with established ones over the same dates, put them side by side in Compare.
- The small-cap fund list shows how the older funds in the strongest category of 2026 have done.
All returns are Direct-plan Growth NAVs and NSE price indices to 1 October 2026. Nothing here recommends a fund.
Frequently asked questions
How have new mutual funds launched in 2026 performed?
Of the 22 actively managed equity funds that published their first Direct-plan NAV between January and June 2026, 16 had done better than the Nifty 500 price index from that date to 1 October 2026, and 11 had a positive return. Against established funds in their own category, 3 of the 10 diversified launches were ahead and 7 behind.
Which 2026 new fund has the highest return so far?
Groww Small Cap Fund, up 28.51% from its first NAV on 2 February 2026 to 1 October 2026. Small caps as a whole rallied over that stretch: the median older small-cap fund gained 16.69% and the Nifty Smallcap 250 13.43%.
Should I compare a new fund with the Nifty or with its category?
With its category, over the same dates. A new small-cap fund that beats the Nifty 500 may only be showing that small caps beat large caps, which is what happened between February and October 2026.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
Fund houses ranked: equity funds vs their categories
263 active equity funds against their category medians over three years to October 2026: Motilal Oswal 5 of 5 ahead, HSBC 8 of 9, SBI 2 of 10, Franklin 0 of 9.
Five-star mutual funds: what the ratings show
185 of 1,629 rated funds hold 5 stars. Among flexi caps, the 5-star median 3-year return trailed the 4-star one; the edge was smaller falls and lower costs.
International funds in 2026: how much was the rupee?
The median overseas equity fund-of-funds returned 24.56% in the year to 30 September 2026. The dollar's 8.28% rise against the rupee supplied about 9.5 points.