<p>This study investigates whether Smart Beta (SB) funds outperform conventional Capitalisation-Weighted (CW) and human managed funds in the Indian Mutual fund industry. While SB strategies have been widely analysed in developed markets, evidence from emerging economies remains limited, despite their distinctive market structures and investor behaviour. India provides a critical setting for such an inquiry, given its unique factor usage in stock selection, relatively short history of SB funds, and heterogeneous investor base. Unlike prior studies that rely on self-constructed portfolios, this study examines the performance of real-world SB mutual funds, thereby capturing their practical relevance for investors. Using a comprehensive set of risk and return-based indicators, we compare SB funds with CW funds and Value funds where high human discretion is exercised, across bullish, stagnant and bearish market phases. The results reveal that SB funds generate significantly higher alpha, deliver superior returns in bearish conditions, and exhibit lower overall risk across all phases. These findings suggest that algorithm-driven factor investing not only outperforms traditional cap-weighted strategies but can also surpass human-managed Value funds in emerging markets. The study provides critical insights for investors seeking resilient portfolio strategies and offers an impetus for mutual fund houses in India to expand their range of SB products.</p>