Equity mutual fund 1 vs 3 vs 5 years returns race 2026: Which schemes have consistently delivered positive money gains?

Equity markets have been going through a volatile phase, with sharp falls raising concerns among mutual fund investors about their investments and where to put their money.

In the 1-year period, the Nifty 50, a key benchmark for the equity market and mutual funds, has delivered a negative return of 12.71%, while the Nifty 500 has also declined by 9.80%, as of 23 October 2026.

Against this backdrop, it is better to look at which equity funds have managed to deliver positive returns across the 1-year, 3-year and 5-year horizons. Consistency across these periods can help investors identify schemes that have navigated different market conditions while generating positive returns over multiple time frames.

Here is what the data for actively managed diversified equity mutual fund schemes reveals.

The table below lists 10 leading actively managed, diversified equity funds ranked by their 1-year returns (excluding sectoral, thematic, international and focused funds). It includes only those schemes that have also delivered positive returns over the 3-year and 5-year periods.

Source: Morningstar; Direct-growth plans; Returns as of 23 October 2026; Only actively managed, diversified equity mutual fund schemes with available data across all three periods are included.

Bank of India Small Cap Fund leads the list, with a 1-year return of 16.71%. It has also delivered positive annualised returns of 18.79% over three years and 17.87% over five years, indicating positive performance across all three time horizons.

DSP Small Cap Fund ranks next, with returns of 9.85% over one year, 15.43% over three years and 15.60% over five years. LIC MF Value Fund follows, delivering 9.16%, 15.40% and 11.21% over the respective periods.

Of the 10 diversified equity mutual fund schemes on the list, 7 are small-cap funds, highlighting their representation among schemes that have delivered positive returns across the three investment horizons. The remaining schemes include LIC MF Value Fund, HSBC Midcap Fund, and ITI Multi Cap Fund.

ITI Small Cap Fund and HSBC Midcap Fund stand out for their three-year annualised returns of 20.58% and 20.21%, respectively. Meanwhile, Bank of India Small Cap Fund has delivered the highest five-year annualised return of 17.87%, followed by Quant Small Cap Fund at 16.51%.

Positive returns across one, three and five years offer investors a way to assess a fund's performance over different periods. However, past returns do not guarantee future performance. Investors should also consider volatility, investment goals and risk appetite before making investment decisions.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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