Equity Mutual Fund Rankings: What Changed in April 2026?
We refreshed our equity mutual fund rankings, while keeping our framework constant. The choppy markets tested our framework – here’s what shifted in our rankings.
1. Key Takeaways & Observations
Since our last rankings review in January 2026, the markets have been choppy and the Nifty50 index has fallen ~8.3% between 25 January 2026 and 6 April 2026. The trigger was the Middle East conflict, which introduced both macro uncertainty and capital flow volatility into Indian equities. Near-term outlook depends on how the conflict plays out, amongst other things.
That backdrop matters because this review uses the same scoring methodology as January 2026. Nothing changed in how we measure fund quality. What changed is what the market revealed about each fund, summarized below:
Decrease in Risk-Reward Scores
Given the higher volatility in the markets, most funds showed a higher standard deviation and lower Sharpe ratio than in January 2026. This, in turn, lowered their risk-reward scores. In our opinion, this is natural in the current turbulent times and precisely underscores why we assign a greater weight to risk-reward metrics within our existing ranking framework.
Decline in Overall Scores
The average composite score declined from 2.895 in January 2026 to 2.725, mainly driven by the decrease in risk-reward scores and some fund manager changes.
Resilience Through Outperformance
Some funds managed to stay ahead of their benchmarks even in choppy markets, either due to higher cash position, differentiated portfolio composition, etc. That edge helped them hold up better and move higher in our rankings.
Broadly Stable Top 3
For most categories, the Top 3 funds were broadly unchanged (although their order changed internally. Some notable exceptions were:
Baroda BNP Large Cap Fund – Moved up to 3rd position from 8th, driven by strong outperformance relative to index, better downside capture ratio.
Baroda BNP Multi Cap Fund – Similarly, their Multi Cap fund also moved up from 6th position to 3rd.
New Entrants
The current review cycle introduces 7 new fund entrants, primarily in Multi Cap and Flexi Cap categories. This means more funds fell within our minimum operating history criteria.
Notable Declines from Top 5
Three funds that held top-5 positions in January 2026 have since dropped outside the top 10:
Throughout this blog, we cover the key changes in our rankings since January 2026. We talk about our equity ranking framework in greater detail here: Our Mutual Fund Ranking Framework
Before we move to the details of ranking changes, let’s look at how our Top 3 funds (from January 2026 rankings) have performed.
2. Past Performance
We have compared the performance of our Top 3 funds ranked in January 2026 for select equity categories. During the last 3-month timeframe, we observed that 18 out of 24 top ranked funds have outperformed their category average, while almost all of them have performed better than its benchmark.
3. Universe Overview
4. Top 3 Funds by Category – April 2026 vs January 2026
The table below presents the top 3 ranked funds in select categories as of the April 2026 review.
5. Category-Level Average 3-Year Rolling Returns
The table below ranks the 16 categories by their average 3-year rolling return as of the April 2026 review. Infrastructure-themed funds lead with a commanding average of 27.75%, followed by Small Cap and Mid Cap categories both near 23%.
The spread between the best-performing category (Thematic - Infrastructure at 27.75%) and the lowest (Thematic - ESG at 15.27%) is approximately 12.5 percentage points, reflecting meaningful dispersion in category-level outcomes.
6. New Fund Entrants
Seven funds entered the ranking universe for the first time in the April 2026 cycle – as they fell within our minimum operational period criteria.
If you want to see the detailed fund-level scores and category-by-category rankings, explore Creso's mutual fund ranking tool at creso.in, where the full April 2026 data is published alongside our methodology. If you are looking for a platform that brings rankings, client management, and portfolio reporting into one place, take a look at what Creso offers for MFDs.
FAQs
Q: How often does Creso update its mutual fund rankings?
A: Rankings are updated quarterly. The most recent cycle compared January 2026 and April 2026 data across 322 equity mutual funds in 16 categories.
Q: Why did so many composite scores fall this quarter even for well-managed funds?
A: Market volatility pushed up standard deviation and compressed Sharpe ratios for most equity funds. These are direct inputs in the risk-reward component of the scoring model. Score movement reflects market conditions and performance, not a change in methodology.
Q: Should I switch my clients out of funds that fell sharply in the rankings this quarter?
A: Not automatically. A single-quarter rank movement is one data point. Look at multi-quarter trends and assess whether the decline reflects a systematic issue (fund manager change, strategy drift) or a market-cycle response before acting. There are also tax, risk profile and other considerations that need to be kept in mind.
Disclaimer
The equity mutual fund rankings are based on a proprietary, rule-based methodology using data sourced from Morningstar and our predefined quantitative parameters. The rankings are intended solely for educational and informational purposes and should not be construed as investment advice, a recommendation, or an opinion on the suitability of any mutual fund scheme.
Mutual fund investments are subject to market risks, including the possible loss of principal. Past performance and ranking outcomes do not guarantee future results. The methodology does not account for individual investor objectives, risk tolerance, financial situation, or tax considerations.
Rankings are derived from historical data and may change over time due to market conditions, portfolio changes, or methodology updates. Investors and distributors are advised to exercise independent judgment, conduct their own analysis, and consult appropriate financial or tax advisors before making any investment decisions.
The use of fund rankings should be only one of several inputs in the investment decision-making process and not the sole basis for selection.
