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Tracking difference and excess return

The gap between a scheme's return and its benchmark's over the same period.

What it measures

For an index fund, tracking difference is its return minus the index return; it is usually slightly negative because of costs. For an active fund the same calculation is called excess return.

How MFIC calculates it

1-year return, 3-year and 5-year CAGR of the scheme minus the same for its benchmark proxy, over identical dates. Shown on scheme pages and available in the screener as “Excess 1Y / 3Y / 5Y”.

Limitations

Benchmark is an index-fund NAV proxy, which already bears that fund's costs.

Tracking difference and excess return by category today

Spread of tracking difference and excess return across Regular-plan schemes in each category, calculated by MFIC from AMFI NAVs as of 1 Oct 2026. The middle half of schemes falls between the 25th and 75th percentiles.

Category (Regular plans)	Schemes	25th percentile	Median	75th percentile
Large Cap	32	1.3%	2.0%	3.1%
Large & Mid Cap	26	0.0%	0.5%	2.2%
Flexi Cap	36	-0.5%	0.8%	4.1%
Multi Cap	22	1.5%	3.2%	5.4%
Mid Cap	29	-0.8%	0.8%	2.6%
Small Cap	24	-2.4%	0.4%	2.9%
ELSS	38	-2.2%	0.2%	1.5%
Focused	27	-1.0%	0.5%	3.7%
Value	21	-0.9%	1.1%	4.1%

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Disclosure. Educational content. Figures are historical calculations from AMFI NAV data and may differ from other sources because of methodology. Past performance does not guarantee future results. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Integrato Financial Services Pvt. Ltd. is an AMFI-registered Mutual Fund Distributor (ARN-173155); this page is not investment advice. Questions? Book a consultation.