Large-cap vs small-cap vs midcap: How many equity mutual funds outperformed their indices in 1 year?

The performance of equity mutual fund schemes is benchmarked against indices such as NIFTY 50, BSE SENSEX, or NIFTY 500.

When a mutual fund scheme outperforms its benchmark index, it means the scheme has delivered greater returns than the index. For instance, if an index (like NIFTY 50) has given a return of 9% in one year, but the mutual fund gave a return of 11% in the same year, it means the latter has outperformed the index.

However, not all equity mutual fund schemes manage to beat their indices.

According to the recent mutual fund performance analysis by Prabhudas Lilladher Capital (PL Capital), as many as 13 large-cap funds outperformed their benchmark in one year, while 18 midcap funds gave more returns than their benchmark indices during this period, as of March 31, 2025.

A total of 14 small-cap funds outperformed the benchmark over 12 months as of March 31.

In percentage terms, 43.43% of large-cap funds outperformed the Nifty 50 TRI, while 64.29% of midcap funds outperformed the NIFTY Midcap 150 TRI in 1 year as of March 31.

Here is how equity mutual fund categories performed against their respective indices over 1 month, 6 months, and 1 year:

Equity Mutual Funds vs Index

On the other hand, a Price Return Index (PRI), like just a regular NIFTY 50, only reflects the gains or losses by stock price changes and doesn’t factor in the dividends.

The TRI version of a benchmark is considered to be more accurate as it depicts the returns more fairly. The market regulator SEBI (Securities and Exchange Board of India) mandates that mutual funds compare their performance to TRI versions of the indices as opposed to PRI versions, as it ensures a fairer comparison.