Indian mutual fund investors are seeing strong performance across different categories as equity and debt schemes respond differently to changing market conditions.
Recent data from ACE MF as of July 28, 2026 shows HDFC Value Fund, Motilal Oswal Midcap Fund, and Aditya Birla SL Medium Term Plan emerging as category leaders in their respective segments based on different investment horizons.
HDFC Value Fund topped the value mutual fund category in three-month returns, delivering a 4.4% gain, while Motilal Oswal Midcap Fund led the mid-cap mutual fund category with a 5.9% one-month return. In the medium-duration debt fund segment, Aditya Birla SL Medium Term Plan recorded the highest one-year CAGR return of 8.5%.
The performance of these three funds highlights how different investment strategies are working in the current market environment.
Value funds are benefiting from opportunities in undervalued companies, mid-cap funds are gaining from renewed investor interest in growth-oriented businesses, while medium-duration debt funds are attracting investors looking for relatively stable returns.
HDFC Value Fund Leads Value Category With 4.4% Three-Month Return
HDFC Value Fund emerged as the top-performing value mutual fund scheme over the three-month period, delivering a 4.4% return, according to ACE MF data released on July 28, 2026.
The scheme had an assets under management of Rs 7,583.3 crore, making it the largest fund among the top-performing value schemes considered in the ranking. The comparison included only mutual fund schemes with an AUM of at least Rs 1,500 crore.
The fund follows a value investment strategy, where fund managers look for companies trading below their estimated intrinsic value. The approach aims to generate returns when the market recognises the long-term potential of these businesses.
HDFC Value Fund also delivered strong performance over longer periods. The scheme generated a 15.7% CAGR return over three years, showing its ability to create wealth beyond short-term market movements.
The fund also outperformed its benchmark significantly. On a one-year basis, HDFC Value Fund was ahead of its benchmark by 7.3 percentage points, as the benchmark delivered a negative return of 1.7% during the period. Over three years, the scheme outperformed the benchmark by 7.5 percentage points, while the benchmark returned 8.2%.
However, mutual fund performance can change depending on market cycles. While HDFC Value Fund leads the three-month return chart, longer periods may show different leaders because value investing depends on valuation recovery and earnings growth.
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Motilal Oswal Midcap Fund Gains 5.9% in One Month
In the mid-cap mutual fund segment, Motilal Oswal Midcap Fund recorded the highest one-month return, delivering a 5.9% gain as of July 28, 2026.
The scheme had the highest corpus among the leading funds considered in the category, with an AUM of Rs 37,473.9 crore. The ranking included only schemes with assets of more than Rs 1,500 crore.
Motilal Oswal Midcap Fund focuses on investing in mid-sized companies with strong growth potential. Mid-cap companies generally offer higher growth opportunities compared with large companies, but they also carry higher volatility due to their sensitivity to economic conditions and market sentiment.
The fund also performed strongly against its benchmark in the short term. It was ahead of its benchmark by 6 percentage points on a one-month basis, as the benchmark delivered a negative return of 0.1%.
Over a one-year period, the fund remained ahead of its benchmark. Motilal Oswal Midcap Fund delivered a return that was 0.1 percentage points higher than the benchmark, which recorded a negative return of 1.7%.
The fund's leadership, however, changes across different time frames. This highlights that short-term market momentum can benefit certain schemes, while long-term rankings depend on consistency across different market cycles.
Aditya Birla SL Medium Term Plan Delivers 8.5% One-Year CAGR
Among medium-duration mutual funds, Aditya Birla SL Medium Term Plan emerged as the strongest performer with an 8.5% one-year CAGR return. The scheme maintained its leadership position when evaluated over a longer period as well, delivering a 9.9% CAGR over three years.
The fund invests primarily in debt instruments with medium maturity periods and is designed for investors looking for comparatively stable returns with moderate interest rate risk.
Aditya Birla SL Medium Term Plan also delivered significant outperformance against its benchmark. On a one-year basis, the scheme was ahead of its benchmark by 5.9 percentage points, as the benchmark returned 2.6%. Over three years, it remained ahead by 3.1 percentage points.
Medium-duration funds are influenced by factors such as interest rate movements, bond yields and credit quality. The strong performance of Aditya Birla SL Medium Term Plan reflects favourable conditions in the fixed-income market and effective portfolio management.
Also Read: Motilal Oswal Financial Services Shares Fall 8% Even As Firm Swings To Profit
Different Market Conditions Support Different Fund Categories
The performance of HDFC Value Fund, Motilal Oswal Midcap Fund and Aditya Birla SL Medium Term Plan shows that different mutual fund categories perform well under different market conditions.
HDFC Value Fund benefited from opportunities in undervalued stocks, Motilal Oswal Midcap Fund gained from investor demand for growth-focused companies, while Aditya Birla SL Medium Term Plan delivered strong returns in the debt market.
However, investors should not select mutual funds only based on recent rankings. Short-term performance can change quickly with market movements. Factors such as investment strategy, risk level, portfolio quality and long-term consistency remain important while evaluating mutual fund schemes.
The latest data shows that investors have opportunities across equity and debt categories, but choosing the right fund depends on individual financial goals and risk appetite.
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