Author: Aadarsh Patel | EQMint
Several Indian equity funds have delivered positive returns over the past six months, offering signs of recovery after a prolonged period of underperformance compared with other emerging markets.
According to data compiled by FE fundinfo and highlighted by Fund Selector Asia, Indian equities have remained under pressure over the past year. The Indian equity market declined around 10% over the 12-month period, while the broader MSCI Emerging Markets Index gained about 30%.
The gap has been even wider over five years. Indian equities returned 12.4%, compared with a 50% gain for the broader emerging-markets index. Taiwan and South Korea significantly outperformed India during the same period, rising 197% and 84%, respectively.
Indian Equity Funds Deliver Positive Six-Month Returns
Despite the broader weakness, several India-focused funds have generated positive returns during the last six months.
HSBC Large and Mid Cap Equity Growth recorded the highest six-month return among the funds highlighted, at 15.91%. LionGlobal India Acc SGD followed with a 15.05% return, while Enam India Growth A3 Acc delivered 14.78%.
Other funds reporting positive six-month returns included DSP BR India TIGER Growth at 13.40%, HSBC Focused Equity Direct Plan Growth at 9.89% and Matthews India A at 9.81%.
The performance data suggests that selected fund strategies have been able to navigate the challenging market environment even as Indian equities broadly remained subdued.
Top-Performing Indian Equity Funds
| Fund | 6-Month Return | YTD Return | 3-Year Return | 5-Year Return |
|---|---|---|---|---|
| HSBC Large and Mid Cap Equity Growth | 15.91% | 1.13% | 38.21% | 43.38% |
| LionGlobal India Acc SGD | 15.05% | -5.00% | 17.65% | 21.81% |
| Enam India Growth A3 Acc | 14.78% | 4.15% | 12.63% | 24.80% |
| DSP BR India TIGER Growth | 13.40% | 5.79% | 46.51% | 91.33% |
| HSBC Focused Equity Direct Plan Growth | 9.89% | -3.24% | 27.14% | 35.38% |
| Matthews India A | 9.81% | -4.92% | 20.66% | 19.79% |
| IDFC Focused Equity Growth | 9.52% | -2.68% | 29.87% | 30.96% |
| Allianz India Equity I NAV | 8.74% | -6.84% | 22.19% | 22.88% |
| Schroder ISF Indian Opportunities A Acc | 8.57% | -2.34% | 16.24% | -3.12% |
| Invesco India Equity A Annual Dis | 7.62% | -8.43% | 11.48% | 13.66% |
Source: FE fundinfo, as reported by Fund Selector Asia. Funds without a five-year track record and those with negative three-year returns were excluded.
What Is Driving the Recovery?
Indian equities have remained broadly flat in 2026, with investors continuing to assess factors including higher oil prices, rotation away from growth stocks and geopolitical uncertainty.
Against this backdrop, the recent performance of select equity funds could indicate that some fund strategies are beginning to benefit from changing market conditions.
However, the six-month performance numbers do not represent the broader Indian equity market. Individual fund returns can vary significantly depending on portfolio construction, sector exposure and investment strategy.
The latest data therefore highlights a mixed picture: Indian equities have lagged major emerging-market peers, but several India-focused funds have delivered positive returns over the recent six-month period.
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