The Indian mutual fund industry has emerged as a significant vehicle for retail and institutional investment, offering a range of fund options categorized by market capitalization— namely, small-cap, mid-cap, and large-cap funds. This study undertakes a comprehensive performance analysis of selected mutual funds from each of these categories to evaluate their risk-adjusted returns, consistency, and alignment with broader market movements. The primary objective is to offer a comparative assessment that can aid investors in making informed portfolio decisions based on their risk appetite and investment goals. The analysis employs key performance indicators such as the Sharpe Ratio, Treynor Ratio, and Jensen's Alpha to measure the efficiency of each fund in generating returns relative to the risk undertaken. Findings indicate that small-cap funds, while exhibiting higher volatility, tend to offer greater potential for excess returns but require higher risk tolerance. Mid-cap funds present a balanced profile, offering moderate risk and satisfactory returns, often appealing to investors seeking growth with controlled risk exposure. Large-cap funds, characterized by lower volatility and stable returns, are found to be more suitable for conservative investors seeking capital preservation and steady growth. It concludes that investors should align their fund choices not only with market trends but also with personal financial objectives and risk-taking capacity.