New Delhi, Sept. 11 -- Latest mutual funds data reveals last month's retail optimism on Indian shares. Equity-oriented schemes drew a net Rs.29,329 crore in August, up about 19% from July, according to the Association of Mutual Funds in India. Flows through systematic investment plans also hit a monthly record Rs.32,297 crore.

This is a sign of disciplined investing by small savers whose confidence in eventual gains doesn't seem to have weakened. Small-cap funds, in particular, found favour, receiving a chunky Rs.7,973 crore, reflecting not just a growing risk appetite but a pursuit of segments with prospects of high growth.

It's worth recalling that foreign investors returned to Indian stocks in big numbers this July and August after m...