ICICI Prudential Midcap Fund, HSBC Midcap Fund, and More Among Equity Schemes Delivering Over 20% One-Year Returns

Equity mutual funds recorded broadly positive performance over the past year, supported by favourable market conditions and sustained investor participation. 

While outcomes varied across fund styles, most schemes generated gains, reflecting overall market resilience during the period under review.

One-Year Performance Overview

An evaluation of equity mutual funds over the period from February 2025 to February 2026 shows that the majority of schemes posted positive returns on lumpsum investments.

Mid-cap oriented funds accounted for a significant share of the higher returning schemes, reflecting stronger participation in broader market segments beyond large cap stocks.

Mid-Cap Funds Lead Returns

Mid-cap funds featured prominently among schemes delivering returns above 20% over the one year period. These funds benefited from price appreciation across mid sized companies, which often experience sharper earnings and valuation cycles compared with larger peers.

A lumpsum investment of ₹1 lakh in some of these schemes would have grown to approximately ₹1.21–₹1.25 lakh over the year, depending on the fund’s performance, as per the Economic Times report.

Funds Reporting Over 20% Returns

The following table summarises equity mutual funds that recorded returns above 20% on one-year lumpsum investments:

Note: The Data above is as of Feb 23, 2026 and is sorted as per 1-year returns.

Performance Across Other Categories

Several diversified and flexi-cap funds delivered moderate but positive returns during the same period. Some schemes generated returns in the high teens range, while tax saving equity-linked savings schemes (ELSS) recorded comparatively lower gains.

Large and flexi cap strategies generally showed more stable but less aggressive performance compared with mid-cap funds, reflecting differences in portfolio composition and risk exposure.

This variation underscores the importance of diversification and careful scheme evaluation rather than relying solely on short-term performance rankings.

Points Investors Should Consider

While one year returns provide a snapshot of performance, investment decisions typically require a longer evaluation horizon. Investors may consider factors such as:

• Individual risk tolerance
• Investment duration and financial goals
• Fund strategy and consistency across market cycles
• Portfolio diversification across categories

Short term performance alone may not fully reflect a scheme’s long term suitability.

Read More: Upcoming NFOs This Week: 8 Funds Opening Between 23–27 February 2026.

Conclusion

The past year saw several equity mutual funds generate returns exceeding 20% on lumpsum investments, with mid-cap funds contributing significantly to overall performance trends. However, outcomes differed across categories, reinforcing the need for investors to align fund selection with their financial objectives and risk profile rather than relying only on recent returns.

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 or 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.

Mutual fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.