New Delhi, Aug. 26 -- Over the last six years, Indian mutual fund investors have increased their exposure to small-cap funds. Each year, inflows into small-cap funds rose, while inflows into large-cap funds did not grow at the same pace.

Small-cap funds attracted Rs.1,386 crore in 2020 and surged to Rs.52,321 crore last year. In comparison, large-cap funds saw an outflow of Rs.2,356 crore in 2020. Although they attracted Rs.25,483 crore in 2025, inflows remained significantly lower than those of small-cap funds, according to annual data published in the NSE Market Pulse, January 2026.

This trend has continued in 2026. AMFI monthly data showed that small-cap funds led growth in the equity segment in July, with inflows rising to Rs.7,768 ...