# Top diversified equity funds by returns and alpha 2026-09-25T21:48:00+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet ITI Small Cap Fund led diversified equity mutual funds with a 25.31% three-year return and the highest alpha of 10.83, Livemint reports using Value Research data. Bandhan Small Cap Fund followed with a 25.26% return and alpha of 10.31. Other top return funds included Invesco India Mid Cap (24%), HSBC Midcap (23.80%) and Invesco India Small Cap (23.54%). While these three did not make the top five for alpha, all had alpha above their category averages. Alpha measures risk-adjusted excess return over a fund's benchmark. The report advises that returns alone do not show outperformance and recommends looking at both returns and alpha for a broader view. Investors should consult a SEBI-registered advisor before making decisions. ## Indian Opinion Analysis Livemint's coverage is a straight educational explainer with no political or regulatory slant. It presents two performance metrics, raw returns and risk-adjusted alpha, and shows that the top funds by one measure largely overlap with the top by the other. The article avoids endorsing any fund and ends with a disclaimer. For investors, the key takeaway is that all five top-return funds also beat their category average alpha, meaning strong returns were not purely a product of market tailwinds. ## Coverage - livemint.com - livemint.com Tags: Bandhan Small Cap Fund, Invesco Mutual Fund, ITI Small Cap Fund, Motilal Oswal Mutual Fund, SEBI, Value Research Canonical: https://indianopinion.org/iti-small-cap-tops-diversified-equity-funds-by-3-year-returns-and-alpha/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/iti-small-cap-tops-diversified-equity-funds-by-3-year-returns-and-alpha/#story-in-brief