New Delhi, Oct. 6 -- Mutual fund investors often spread their equity allocation across large-, mid-, and small-cap funds to balance growth and risk. However, recent mutual fund flows, with stronger inflows into mid- and small-cap categories and outflows from large-cap funds, also reflect changing investor preferences.

In the last one year, large-cap funds delivered a category-average return of -4.76%, compared with 2.87% for mid-cap funds and 8.02% for small-cap funds.

An October 2026 Netra report from DSP Mutual Fund points to a sharp divergence between large caps and the mid- and small-cap segments, raising an important question about why investors should review their equity fund allocations at this stage.

DSP Mutual Fund says the ma...