Equity Mutual Fund Rankings: What Changed in October 2026?
We refreshed our equity mutual fund rankings, while keeping our framework constant. Amid choppy markets, our top 3 remained broadly stable.
1. Key Takeaways & Observations
Quarterly rankings are not just about identifying which funds moved up or down. They can also tell MFDs what is driving fund performance, and whether a change in ranking is structural or simply a reflection of the market environment.
Since our last rankings review in July 2026, the markets continued their rally until early August. However, Iran-US war re-escalation, rising oil prices and rising global bond yields meant that markets fell for most part of August and September. As of 5 October 2026, Nifty 50 was trading at levels close to the lows observed in March 2026 while Nifty 500 was marginally above the March 2026 lows. Primary market activity remained strong with numerous IPOs coming in the past quarter.
We continue to use the same scoring methodology as our previous iterations. However, we have refined the benchmark indices (that we use to compare relative returns) for certain categories. Since this change is applied throughout the respective categories – as such, there is no impact on the rankings.
While our previous review in July 2026 showed how funds behaved in market recovery, this current review (and our review in April 2026) indicate how they do in volatile and weak markets. Summary of our key observations in the past quarter below:
Near-term performance and portfolio construct drove the rankings
The markets have been relatively flat for the past 2 years. Due to this, a fund’s recent performance drives a greater part of the 3-year returns as well as risk-reward metrics. For categories that have the flexibility to select market capitalisation of holdings (Flexi Cap, Multi Cap, etc.) – MF schemes that had higher exposure to small cap stocks performed better than large or mid cap-oriented schemes.
Marginal decline in average scores
The average score of our equity MF universe declined from 2.71 in July 2026 to 2.63 in October 2026. This was mainly driven by:
Fall in average 3-year and 5-year rolling returns by 0.72% and 2.6% respectively
Higher volatility (measured by standard deviation), resulting in lower sharpe ratio and risk-reward scores; partially offset by
Better performance relative to benchmark indices
Narrow gap in scores
Beyond the Top 2-3 ranked funds in each category, the score gap between the next 5 ranks was very small in July 2026. Hence, even minor changes in score have caused some shifts in the Top 5 rankings.
Broadly Stable Top 3
For most categories, the Top 3 funds were broadly unchanged (although their order changed internally). Some notable exceptions were:
Motilal Oswal Flexi Cap Fund – Moved up to 3rd position from 9th, due to its near term outperformance and a good portion of mid and small caps in its portfolio.
Canara Robeco Large Cap Fund – Moved up to 3rd position from 7th, with marginally better performance and fund manager crossing the 10-year milestone.
Motilal Oswal Large and Mid Cap Fund – Moved up to 2nd position from 6th position, driven mainly by its ~25% small cap exposure. ICICI Prudential, which was our top ranked fund in this category, dropped to 6th position due to change in its fund manager and underperformance.
Axis Multi Cap Fund moved up to 2nd position from 5th, due to better relative performance, while Quant Small Cap Fund moved up to 3rd position from 5th for the same reasons.
Top 5 Funds
Only one fund that held top-5 positions in July 2026 has since dropped outside the top 10. Baroda BNP Paribas Multi Cap Fund moved from 3rd position to 12th, driven by poor performance and a change in its lead manager.
New Entrants
The current review cycle introduces 12 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 July 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 – October 2026 vs July 2026
The table below presents the top 3 ranked funds in select categories as of the October 2026 review.
4. Category-Level Average 3-Year Rolling Returns
The returns eased modestly across all categories except Healthcare, as the trailing window absorbed the prior quarter's drawdown.
The spread between the best-performing category (Thematic - Infrastructure at 25.6%) and the lowest (Sector - Technology at 13.8%) is approximately 11.8%, reflecting meaningful dispersion in category-level outcomes.
5. New Fund Entrants
Twelve funds entered the ranking universe for the first time in the October 2026 cycle – as they fell within our minimum operational period criteria. The below table shows the new entrants that were in the Top 10.
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 October 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 July 2026 and October 2026 data across 339 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.
