The CRISP framework evaluates mutual funds on three parameters—Consistency in Performance, Relative Risk versus Peers, and Investment Style of the Portfolio—offering investors a deeper view beyond conventional return-based rankings.
Category leaders
Among large-cap schemes, ICICI Prudential Large Cap Fund secured the highest CRISP consistency score of 97%, ahead of Nippon India Large Cap Fund at 95%. The fund also manages assets worth nearly ₹69,948 crore, making it one of the largest schemes in the category.
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In the ELSS category, HDFC ELSS Taxsaver Fund topped the rankings with an impressive 99% consistency score and a five-year CAGR of 16.47%. SBI ELSS Tax Saver Fund followed with an 84% score.
The Flexi Cap category was led by HDFC Flexi Cap Fund, which earned a 93% CRISP score and delivered a robust 17.9% five-year CAGR. Franklin India Flexi Cap Fund and Parag Parikh Flexi Cap Fund followed with scores of 79% and 72%, respectively.
Nippon India Mutual Fund also stood out across categories. Nippon India Growth Mid Cap Fund topped the Mid Cap category with a 92% consistency score, while Nippon India Small Cap Fund emerged as the highest-ranked small-cap scheme with a score of 78% and assets exceeding ₹61,800 crore.
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Small-Cap investing
A key feature of the report was its analysis of small-cap investing, which challenged a widely held belief that small-cap funds significantly outperform large-cap funds over the long term.
Using 20 years of historical data, the report found that the Nifty Small Cap 250 TRI generated annualized returns of 12.54%, compared with 11.72% for the Nifty 100 TRI. While small caps delivered higher returns, the outperformance was only 0.82 percentage points annually, despite substantially higher risk.
The analysis showed that small-cap volatility stood at 28.81%, versus 21.06% for large caps, while maximum drawdowns were significantly steeper at -75.56% compared with -61.08%.
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The report also highlighted the cyclical nature of small-cap performance. Over rolling three-year periods, annualized outperformance ranged from -17.16% to +20.52%, indicating that returns can vary dramatically depending on market conditions.
SIP flows
Despite concerns over global macroeconomic challenges, foreign investor outflows and market corrections, retail investors continued to invest steadily through SIPs. Monthly SIP contributions reached a record ₹32,087 crore in March 2026, with nearly 9.65 crore contributing accounts, underscoring the growing maturity of India's investment culture.
The report concludes that investors should focus on consistency, risk management and investment style rather than chasing recent returns. It also suggests that tactical allocation to small-cap funds based on valuations and market cycles may prove more effective than a simple buy-and-hold approach.
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