NEW DELHI: Mid-cap and small-cap mutual funds attracted inflows of approximately Rs 30,350 crore during the first half of the current financial year, indicating strong investors interest, primarily due to impressive returns delivered by them.
The data showed that mid-cap funds received an inflow of Rs 14,756 crore, while small-cap funds attracted Rs 15,586 crore in the first half of FY25, totaling Rs 30,342 crore.
Mid-cap and small-cap indices have outperformed both the Nifty and large-cap indices this financial year, posting gains of about 20 per cent and 24 per cent, respectively.
In the previous year, the cumulative inflow into mid-cap and small-cap funds amounted to Rs 32,924 crore for the same period, as per data from the Association of Mutual Funds in India (Amfi).
Despite concerns raised by market regulator Sebi regarding heightened inflows into small-cap and mid-cap funds, experts believe that investors will continue to favor these categories due to their potential for high returns .
"Small caps will continue to grow at a faster rate for years to come. I expect the inflows to continue as Indians want to invest in the high-growth sectors. Small cap funds should be seen as an integral part of one's portfolio allocation and not a tactical play," Trust Mutual Fund CEO Sandeep Bagla said.
Feroze Azeez, deputy CEO of Anand Rathi Wealth Ltd, highlighted that the stress test in March 2024 has also contributed to investor confidence by ensuring that fund managers are prepared to handle market volatility. He said, "With the mid-cap and small-cap segments projected to grow at 20 per cent and 25 per cent, respectively, in FY25, we expect inflows to remain strong, especially as SIP inflows continue to hit new peaks."
Meanwhile, Large-cap mutual funds also registered an inflow of over Rs 7,067 crore in the April-September period of FY25, a significant improvement from the outflow of Rs 5,700 crore in the same period of FY24.
The number of investors (folios) in mid-cap and small-cap schemes increased by 1.32 crore year-on-year to nearly 4 crore in the six months period ended September 30.
The assets of mid-cap and small-cap schemes combined rose 63 per cent to Rs 7.26 lakh crore at the end of September 2024 from Rs 4.44 lakh crore a year earlier, reflecting the overall growth in these categories.
The data showed that mid-cap funds received an inflow of Rs 14,756 crore, while small-cap funds attracted Rs 15,586 crore in the first half of FY25, totaling Rs 30,342 crore.
Mid-cap and small-cap indices have outperformed both the Nifty and large-cap indices this financial year, posting gains of about 20 per cent and 24 per cent, respectively.
In the previous year, the cumulative inflow into mid-cap and small-cap funds amounted to Rs 32,924 crore for the same period, as per data from the Association of Mutual Funds in India (Amfi).
Despite concerns raised by market regulator Sebi regarding heightened inflows into small-cap and mid-cap funds, experts believe that investors will continue to favor these categories due to their potential for high returns .
"Small caps will continue to grow at a faster rate for years to come. I expect the inflows to continue as Indians want to invest in the high-growth sectors. Small cap funds should be seen as an integral part of one's portfolio allocation and not a tactical play," Trust Mutual Fund CEO Sandeep Bagla said.
Feroze Azeez, deputy CEO of Anand Rathi Wealth Ltd, highlighted that the stress test in March 2024 has also contributed to investor confidence by ensuring that fund managers are prepared to handle market volatility. He said, "With the mid-cap and small-cap segments projected to grow at 20 per cent and 25 per cent, respectively, in FY25, we expect inflows to remain strong, especially as SIP inflows continue to hit new peaks."
Meanwhile, Large-cap mutual funds also registered an inflow of over Rs 7,067 crore in the April-September period of FY25, a significant improvement from the outflow of Rs 5,700 crore in the same period of FY24.
The number of investors (folios) in mid-cap and small-cap schemes increased by 1.32 crore year-on-year to nearly 4 crore in the six months period ended September 30.
The assets of mid-cap and small-cap schemes combined rose 63 per cent to Rs 7.26 lakh crore at the end of September 2024 from Rs 4.44 lakh crore a year earlier, reflecting the overall growth in these categories.
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