Smallcap funds and midcaps received inflows of Rs 6,885 crore and Rs 6,551 crore, respectively, in April. On a monthly basis, these categories saw jumps of 10% and 8%, respectively.
“Smallcap edges ahead of Midcap. This is a notable positioning signal. Smallcap funds have historically seen sharper drawdowns during periods of market stress, and the fact that investors are not only holding but actively adding to this category suggests either renewed confidence in the India growth story at the margin, or an allocation catch-up by investors who see post-correction value in smaller companies,” said Nitin Agrawal, CEO, Mutual Funds, InCred Money.