How much funds swing
Over the three years to 27 May 2026, the median large-cap fund's NAV moved with an annualised volatility of 13.07%. The median small-cap fund's moved with 16.49%.
Those numbers are the standard deviation of daily returns, scaled up to a year. A second measure is more concrete: the worst fall from a peak to a trough at any point in the three years. For the median large-cap fund it was 16.44%; for the median small-cap fund, 24.12%.
Every figure covers each fund's Direct plan, Growth option, and only funds with a full three-year record, so the volatility and the worst fall are measured over the same window. NAVs run to Wednesday 27 May.
Equity categories
| Category | Funds | Volatility (median) | Lowest | Highest | Worst fall (median) | 3-year return (median) |
|---|---|---|---|---|---|---|
| Large Cap | 30 | 13.07% | 11.98% | 15.87% | −16.44% | 12.91% |
| Dividend Yield | 8 | 13.16% | 12.29% | 15.80% | −18.52% | 17.05% |
| Value | 20 | 13.77% | 10.97% | 18.61% | −17.93% | 17.48% |
| ELSS | 36 | 13.77% | 11.06% | 18.82% | −17.95% | 14.61% |
| Flexi Cap | 33 | 13.92% | 9.79% | 17.66% | −18.81% | 15.28% |
| Focused | 25 | 13.92% | 11.49% | 16.66% | −17.81% | 15.83% |
| Large & Mid Cap | 26 | 14.75% | 12.60% | 18.78% | −18.70% | 17.66% |
| Multi Cap | 19 | 15.04% | 12.67% | 16.88% | −19.95% | 18.53% |
| Mid Cap | 28 | 15.87% | 13.25% | 18.23% | −21.23% | 22.12% |
| Small Cap | 23 | 16.49% | 14.00% | 19.00% | −24.12% | 19.21% |
| Sector & theme | 125 | 15.05% | 11.14% | 33.44% | −20.70% | 18.07% |
For comparison, we measured the indices the same way. The Nifty 50's volatility was 13.07% and its worst fall 15.77%, from 26,216.05 on 26 September 2024 to 22,082.65 on 4 March 2025. The Nifty Midcap 150's were 17.04% and 21.09%; the Nifty Smallcap 250's 19.01% and 26.14%.
Large-cap funds matched the Nifty 50's volatility exactly and fell slightly further at their worst. Mid-cap funds were a little calmer than their index, and small-cap funds noticeably so: two and a half points less volatile, with a worst fall two points shallower.
Outside equity
| Category | Funds | Volatility (median) | Worst fall (median) | 3-year return (median) |
|---|---|---|---|---|
| Aggressive hybrid | 28 | 10.43% | −13.11% | 13.53% |
| Multi asset allocation | 11 | 9.37% | −10.78% | 18.13% |
| Balanced advantage | 29 | 8.16% | −9.10% | 11.44% |
| Equity savings | 19 | 4.59% | −4.77% | 10.07% |
| Conservative hybrid | 17 | 3.59% | −3.64% | 8.71% |
| Gilt | 23 | 2.93% | −3.59% | 5.82% |
| Dynamic bond | 22 | 2.04% | −1.71% | 6.80% |
| Corporate bond | 21 | 1.07% | −0.63% | 6.98% |
| Arbitrage | 25 | 0.89% | −0.24% | 7.41% |
| Liquid | 37 | 0.17% | 0.00% | 6.95% |
Gilt funds are the odd ones out among debt: almost three times as volatile as corporate bond funds over the period, with a lower median return.
Balanced advantage funds show the widest range inside a hybrid category. Their median worst fall was 9.10%, but Motilal Oswal Balanced Advantage fell 26.53% at its worst, deeper than the median large-cap fund.
Calmest and choppiest diversified funds
| Fund (Direct, Growth) | Category | Volatility | Worst fall | 3-year return |
|---|---|---|---|---|
| Parag Parikh Flexi Cap | Flexi Cap | 9.79% | −10.98% | 16.26% |
| DSP Value | Value | 10.97% | −13.69% | 20.21% |
| ICICI Prudential Value | Value | 11.04% | −14.01% | 17.47% |
| Parag Parikh ELSS Tax Saver | ELSS | 11.06% | −14.75% | 12.86% |
| HDFC Focused | Focused | 11.49% | −13.98% | 18.55% |
| … | ||||
| Quant Value | Value | 18.61% | −24.03% | 27.49% |
| Bank of India Small Cap | Small Cap | 18.74% | −27.08% | 23.64% |
| Motilal Oswal Large and Midcap | Large & Mid Cap | 18.78% | −26.06% | 26.02% |
| Motilal Oswal ELSS Tax Saver | ELSS | 18.82% | −27.71% | 24.49% |
| ITI Small Cap | Small Cap | 19.00% | −24.17% | 27.05% |
Over these three years, the choppy funds were paid for it. Across 251 diversified equity funds, the correlation between volatility and three-year return was 0.60. All five of the most volatile returned more than 23% a year.
The deepest falls were not all rewarded, though. Motilal Oswal Focused fell 31.25% at its worst and returned 12.19% a year; Tata Small Cap fell 30.90% and returned 13.64%.
What this does not tell you
Three years is one market. Mid and small caps had a strong run for much of this window, which is why volatility and return line up so neatly. In a period when they fall, the same volatility comes with losses.
The worst fall depends on the window. For the Nifty 50 it is the fall that ended in March 2025. The fall from January to March this year, 15.18% at its deepest on 30 March, came close but did not exceed it.
Volatility is not the same as risk of loss. It counts rises and falls alike. None of this is advice to buy or sell any fund.
Where to go from here
Tracking error and standard deviation explains what the volatility figure measures, and risk-adjusted returns covers how to weigh it against return. The low-drawdown equity screen and falls less than it rises filter funds on these measures.
For one bad month up close, see the equity funds that fell least in March.
Frequently asked questions
Which mutual fund category is the most volatile?
Among diversified equity categories, small-cap funds: their median annualised volatility over the three years to 27 May 2026 was 16.49%, across 23 funds with a full record, against 13.07% for large-cap funds. Sector and theme funds ranged far wider, from 11.14% to 33.44%.
How far have equity funds fallen at their worst in three years?
For funds with three-year records to 27 May 2026, the median worst peak-to-trough fall was 16.44% for large-cap funds, 21.23% for mid caps and 24.12% for small caps. The deepest among diversified equity funds was Motilal Oswal Focused Fund's 31.25%.
Do more volatile funds return more?
Over the last three years, broadly yes. Across 251 diversified equity funds with three-year records to 27 May 2026, the correlation between volatility and three-year return was 0.60. That describes one period, in which mid and small caps did well; it is not a rule.
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
Arbitrage funds vs liquid funds: the 2026 scorecard
The median arbitrage fund returned 6.68% in the year to 30 September 2026, against 6.46% for liquid funds. Where each came out ahead, and what it cost.
Balanced advantage funds in 2026's falling market
The Nifty 50 fell 13.4% from 31 December 2025 to 30 September 2026. The median balanced advantage fund lost 1.7%, and its worst dip was 8.7%.
Direct vs regular plans: the 1.16-point equity fee gap
A regular equity plan costs a median 1.16 points a year more than its direct twin, on AMFI's September 2026 data. Over ten years, direct ended 10.2% ahead.