A large number of retail investors are currently avoiding the direct route and instead opting for mutual funds in the mid-cap and small-cap segment. As a result, small-cap funds have garnered the maximum inflows among all equity categories in March (Rs 2,430 crore) and April (Rs 2,182 crore) 2023, according to data from the Association of Mutual Funds in India.
Optimism driven by positive experience
Investors are displaying high interest in the small-cap category because of their positive experience. “Over the past decade, small-cap funds have consistently outperformed large-cap funds,” says Resham Jain, fund manager, DSP Mutual Fund. Jain also