Equity mutual funds continued to attract investor attention in February 2026 due to strong long‑term performance across multiple thematic categories. The 5‑year CAGR rankings highlight the leadership of PSU, infrastructure, commodities and mid‑cap strategies in shaping return outcomes.
These performance trends reflect the impact of sector‑specific cycles and diversified portfolio construction. The data offers a clear snapshot of long‑term trends using metrics as of February 2026.
| Name | AUM (₹ Crore) | Expense Ratio | CAGR 5Y (%) | Sharpe Ratio |
| SBI PSU Fund | 5,816.55 | 0.84 | 29.79 | 1.14 |
| Aditya Birla SL PSU Equity Fund | 5,643.33 | 0.61 | 29.47 | 1.05 |
| ICICI Pru Infrastructure Fund | 8,133.93 | 1.15 | 28.53 | 0.56 |
| Invesco India PSU Equity Fund | 1,448.71 | 0.90 | 28.53 | 0.98 |
| Quant Small Cap Fund | 29,784.55 | 0.81 | 27.97 | -0.20 |
| ICICI Pru Commodities Fund | 3,408.52 | 0.95 | 26.57 | 1.10 |
| Quant Infrastructure Fund | 3,079.78 | 0.83 | 26.46 | 0.15 |
| ICICI Pru India Opportunities Fund | 34,778.96 | 0.66 | 26.05 | 0.84 |
| Motilal Oswal Midcap Fund | 36,880.18 | 0.74 | 25.97 | -0.39 |
Note: The schemes mentioned above have been selected and sorted based on 5Y CAGR as of February 6, 2026
PSU‑focused equity funds dominate the top positions in the 5‑year CAGR ranking. SBI PSU Fund and Aditya Birla SL PSU Equity Fund reported CAGRs of 29.79% and 29.47%, respectively, reflecting strong PSU stock performance over the period.
Their long‑term outcomes align with multi‑year improvements in balance sheets and profitability across government‑owned enterprises. Infrastructure‑oriented funds also rank strongly due to increased capital expenditure and continued project execution supporting long‑term visibility.
While CAGR offers insight into long‑term growth, Sharpe ratios help assess risk‑adjusted performance. Funds such as SBI PSU Fund and ICICI Pru Commodities Fund reported Sharpe ratios above 1, indicating stronger risk‑adjusted returns.
Meanwhile, funds like Quant Small Cap Fund and Motilal Oswal Midcap Fund displayed negative Sharpe ratios, signalling higher volatility despite strong absolute returns. Expense ratios ranged from 0.61% to 1.15%, reflecting a mix of cost‑efficient and actively managed offerings.
| Name | Returns - 1Y |
| Nippon India Taiwan Equity Fund | 70.06 |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund | 34.89 |
| Motilal Oswal Nifty Capital Market Index Fund | 32.86 |
| Franklin Asian Equity Fund | 32.71 |
| Tata Nifty Capital Markets Index Fund | 32.56 |
| ICICI Pru Nifty200 Value 30 Index Fund | 32.3 |
| DSP Natural Res & New Energy Fund | 31.22 |
| Motilal Oswal BSE Enhanced Value Index Fund | 30.72 |
| Motilal Oswal Nifty India Defence Index Fund | 30.3 |
| Aditya Birla SL Intl. Equity Fund | 30.17 |
Note: The schemes mentioned above have been selected and sorted based on 1Y Returns as of February 6, 2026
Read More: Best 10 International Mutual Funds in India for February 2026.
The best‑performing equity mutual funds for February 2026 demonstrate strong long‑term CAGR outcomes led by PSU, infrastructure and commodities themes. Risk‑adjusted metrics add further context, highlighting variations in volatility across fund categories.
AUM trends show sustained investor engagement across both large and niche offerings. These rankings offer a structured view of how long‑term thematic strategies have performed over the past 5 years.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 6, 2026, 4:21 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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