Largecap heavy funds back in reckoning as smallcap fever recedes

In a first in 17 months, largecap, flexicap funds outpace smallcap schemes in terms of flows

Net inflows into two of the ‘lower risk’ equity funds — largecaps and flexicaps — outpaced the flows into smallcap funds during January 2024 for the first time in 17 months.

This is an indication that investors may now be shifting to the relatively safer largecap stocks after a sharp run up in the mid and smallcap spaces.

Net inflows into large and flexicap funds were at Rs 3,730 crore last month against Rs 3,260 crore by smallcap schemes.

Large and flexicap schemes, which generally have over 60 per cent allocation in largecap stocks, struggled to garner funds in the