Value Research’s latest list of five-star mutual funds underscores ongoing investor interest in long-term value and flexible-cap strategies, with performance data pointing to steady winners amidst market shifts in 2026.
Value Research’s latest list of so-called wealth builders points to 15 equity-orientated mutual funds that currently carry its top five-star rating, with the selection refreshed as of August 7, 2026. The rankings are presented as a starting point rather than a final verdict, since the ratings are based on historical risk-adjusted returns and can change as market conditions shift.
The broad theme is clear: investors hunting for long-term compounding are still being steered towards value funds, flexi-cap strategies, large- and mid-cap blends, retirement schemes and children’s plans. Other Indian fund round-ups published in 2026 have taken a similar approach, focusing on schemes with consistent outperformance against benchmarks and peers, or on trailing three-year returns derived from AMFI net asset values. That reflects a wider industry habit of using rolling performance, expense ratios and assets under management as the main screening tools.
Among the strongest three-year performers on the list are UTI Nifty 500 Value 50 Index Fund at 26.4% CAGR and Motilal Oswal BSE Enhanced Value Index Fund at 25.6%. Both are passive value strategies, offering low-cost exposure to stocks that screens identify as attractively priced. Motilal Oswal Large and Midcap Fund follows at 23.6%, while SBI Children’s Fund and ICICI Prudential Retirement Fund are tied at 22.4%, underlining how goal-based products can still deliver competitive equity-style returns.
The middle of the ranking is dominated by flexi-cap and large-and-mid-cap schemes, including Bank of India Flexi Cap Fund at 21.6%, ITI Flexi Cap Fund and Bandhan Large & Mid Cap Fund at 20.3%, and HSBC Value Fund at 18.9%. HDFC Flexi Cap Fund, ICICI Prudential Large & Mid Cap Fund and ICICI Prudential Diversified Equity All Cap Omni FoF also feature, suggesting that diversified multi-cap exposure remains a popular route for investors prepared to tolerate volatility in pursuit of higher returns.
Further down the table, Parag Parikh Flexi Cap Fund and ICICI Prudential Value Fund show more modest three-year gains of 14.7% and 14.6% respectively, although both have longer track records that may appeal to investors who prioritise style consistency over short-term rank. That is a reminder that recent league-table performance does not always capture the full picture, especially in value strategies, which can lag growth-heavy markets for extended periods.
For savers considering any of these funds, the key question is not simply which one has the highest rating, but whether the strategy matches the goal, time horizon and appetite for risk. A five-star mark may help narrow the field, but it does not remove the need to assess portfolio mix, costs, fund management and discipline. As several 2026 fund guides note, the strongest results tend to come from staying invested through market cycles rather than chasing the latest winner.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
