The assets under management (AUM) of small-cap schemes in January 2024 touched a record ₹2.48 lakh crore. It was almost at 83% of the AUM of the large-cap scheme category of ₹2.99 lakh crore in January, as against 44% in August 2021, according to data from Samco Mutual Fund.
Similarly, assets of mid-cap funds rose to ₹2.9 lakh crore. They stood at 97% of the large-cap scheme AUM as against 69% earlier.
The rising AUM of these categories is a result of surging stock prices of small-caps and mid-caps along with flows into them.
“Higher returns in the recent past, and a feeling that mid- and small-caps do better when the economy does well have led to high flows in the space,” said Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors.According to data from Franklin Templeton, small-cap funds have seen the highest net sales of ₹42,037 crore in the last 12 months, followed by midcap funds of ₹23,346 crore while large-cap funds saw outflows of ₹2,397 crore. Total inflows into active equity mutual funds in the last 12 months were ₹1.71 lakh crore.Usually, large-cap schemes or stocks get bulk of the flows. Out of the Nifty 500 index, a broad based index, large-caps – the country’s most influential companies – have 75% of the weight, 16% is held by mid-cap stocks and the balance 9% belongs to small cap stocks.