Mid- and small-cap mania: Why retail investors need to rebalance toward largecaps
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Recent data from the Indian mutual fund industry reinforces the trend of retail overweight in mid- and small-cap funds. In August 2025, equity funds attracted ₹33,430 crore in net inflows, while SIP contributions held steady at ₹28,265 crore. Despite a slight dip in total assets under management (₹75.18 lakh crore vs. ₹75.36 lakh crore in July) due to market corrections, investor engagement remained strong, with 15 lakh new folios added and retail folios in equity, hybrid, and solution-oriented schemes rising to 19.64 crore. Category-wise flows show flexicap funds leading (₹7,679 crore), followed by mid-caps (₹5,331 crore) and small-caps (₹4,993 crore), while large-cap inflows gained momentum at ₹2,640 crore—a 33% rise from July. Gold and silver ETFs also saw significant interest, drawing ₹7,200 crore and ₹1,759 crore respectively. These numbers highlight that while investors continue chasing high-growth segments, some rotation into safer...