Mid, small-cap mutual funds attract 30,350 crore on strong returns

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NEW DELHI: Mid-cap and small-cap. have continued to attract strong investor interest, garnering nearly Rs 30,350 crore in inflows during April-Sept of the current financial year, driven by impressive returns delivered by these segments...

In comparison, the cumulative inflow into mid-cap and small-cap funds stood at Rs 32,924 crore during the same period last year, according to data from the Association of Mutual Funds in India (Amfi)...

The inflow trend persists despite concerns raised by market regulator Sebi over heightened inflows into small-cap and mid-cap funds, as experts believe investors will continue to favour these categories for their potential to deliver..

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.. Individually, mid-cap funds saw an inflow of Rs 14,756 crore and small-cap funds attracted Rs 15,586 crore in the first half of FY25..

In addition, stress test in March 2024 has also played a role, reinforcing confidence by ensuring that fund managers are prepared to handle market volatility, Feroze Azeez, deputy chief executive officer, Anand Rathi Wealth, 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. continue to hit new peaks," he said...

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