This study examines the performance, risk, and investment strategy effectiveness of selected equity mutual funds across large-cap, mid-cap, and small-cap categories. It uses secondary data based on monthly Net Asset Value (NAV) from March 2022 to February 2026. Fund performance is evaluated using average returns, annualized returns, and Compound Annual Growth Rate (CAGR), while risk is measured through standard deviation and variance. The Sharpe ratio is used to assess risk-adjusted performance, and rolling return analysis evaluates consistency over time. A multi-criteria ranking approach identifies top-performing funds based on return, risk, and efficiency. The study also compares investment strategies such as SIP, Step-up SIP, Lump Sum, and hybrid approaches using Internal Rate of Return (IRR). The findings confirm a clear risk–return relationship, where small-cap funds deliver higher returns with higher volatility, while large-cap funds provide stability. Hybrid strategies, particularly Step-up SIP combined with Lump Sum, are found to generate the highest returns.

Keywords: Equity Mutual Funds, Risk–Return Analysis, SIP (Systematic Investment Plan), Sharpe Ratio, Investment Strategies