From mint · Srushti Vaidya · · 1m 10s
Small-cap funds surge to 44% of equity inflows in September
Small-cap and mid-cap funds captured 44% of equity mutual fund inflows in September despite market corrections.
In brief
Small-cap and mid-cap funds captured 44% of equity mutual fund inflows in September despite market corrections. Small-cap and mid-cap funds attracted record monthly inflows of ₹9,038 crore and ₹7,834 crore in September, accounting for 44% of total equity mutual fund inflows. Originally reported by mint.
Small-cap funds surge
Small-cap funds received net inflows of ₹9,038 crore in September, surpassing their previous record of ₹7,973 crore in August.
Mid-cap funds rise
Mid-cap funds attracted ₹7,834 crore, exceeding their previous monthly high of ₹6,989 crore set in August.
Market correction
Small-cap and mid-cap funds drew record monthly inflows in September even as markets corrected.
Share of inflows
Their share of equity fund inflows eased from 51% in August to 44% in September.
Liquidity risk
The concentration of inflows raises concerns about liquidity if investors rush to redeem holdings.
Index performance
Small-cap indices gained 3% while large-cap indices fell 12% over the past year.
What happens next
Liquidity risks could increase if investors start redeeming small-cap funds during market corrections.
At a glance
Small-cap and mid-cap funds attracted record monthly inflows of ₹9,038 crore and ₹7,834 crore in September, accounting for 44% of total equity mutual fund inflows.
