Equity Mutual Fund Rankings: What Changed in July 2026?
We refreshed our equity mutual fund rankings, while keeping our framework constant. Amid market recovery and volatility, our top 3 broadly stayed the same.
1. Key Takeaways & Observations
Since our last rankings review in April 2026, the markets recovered from the lows of March 2026, but have been relatively choppy amid geo-political tensions. While things seemed to have eased out by 1st week July, new wave of attacks on 8 July 2026 hint towards uncertainty, the near-term outlook depends on how the conflict plays out, and the resilience of our economy. Primary market activity has been buzzing with numerous big-ticket IPOs lined up in the coming months.
We continue to use the same scoring methodology as our previous iterations. While our previous review in April 2026 showed how our top-ranked funds behaved in volatile and weak markets, the current review shows how they behaved when the markets recovered (albeit in a volatile manner). Summary of our key observations in the past quarter below:
Lower Scores for Large Cap oriented schemes: While Nifty 100 Index gave positive returns in the past quarter, it underperformed other categories in recovery. Further, historical data (both 3 and 5 years) shed periods of higher returns (April to June 2021 and 2023), lowering the overall return profile for funds with large cap orientation (Large Cap, Large and Mid Cap, Flexi Cap, etc.).
Slight Decline in Overall Scores: The average composite score declined marginally from 2.725 in April 2026 to 2.709, mainly driven by shedding historical returns’ period.
Fund Orientation Matters: Since it was a period of recovery for the markets, fund houses with a slightly aggressive/active orientation (like Quant, Invesco, Bandhan, etc.) rose up in the rankings. Similarly, funds with slightly conservative or large-cap heavy orientation (like ICICI Prudential, Nippon, etc.) moved down slightly in the rankings.
Broadly Stable Top 3: For most categories, the Top 3 funds were broadly unchanged (although their order changed internally). Some notable exceptions were:
Invesco Focused Fund – Moved up to 1st position from 5th, driven by strong outperformance in market recovery and improving risk-reward metrics.
HDFC Large Cap Fund – Moved up to 3rd position from 4th, swapping places with Baroda BNP – the score difference between both was marginal.
Value-Oriented Funds – SBI Contra Fund moved down from 2nd position to 5th position, driven by underperformance and reducing risk-reward score.
Top 5 Funds: Only one fund that held top-5 positions in April 2026 have since dropped outside the top 10. DSP Large Cap Fund moved from 5th position to 11th, driven by poor performance and lead manager change.
New Entrants: The current review cycle introduces 6 new fund entrants across categories. This means more funds fell within our minimum operating history criteria.
Throughout this blog, we cover the key changes in our rankings since April 2026. We talk about our equity ranking framework in greater detail here: Our Mutual Fund Ranking Framework
2. Universe Overview
3. Top 3 Funds by Category – July 2026 vs April 2026
The table below presents the top 3 ranked funds in select categories as of the July 2026 review.
4. Category-Level Average 3-Year Rolling Returns
Categories ranked by average 3-year rolling return as of the July 2026 review. Infrastructure again leads (26.69%), with Healthcare the only category to improve versus April (+0.81 pts). The returns eased modestly across most categories, as the trailing window absorbed the prior quarter's drawdown.
The spread between the best-performing category (Thematic - Infrastructure at 26.69%) and the lowest (Thematic - ESG at 14.78%) is approximately 11.9 percentage points, reflecting meaningful dispersion in category-level outcomes.
5. New Fund Entrants
Six funds entered the ranking universe for the first time in the July 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 July 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 April 2026 and July 2026 data across 327 equity mutual funds in 16 categories.
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.
