New Delhi, Aug. 26 -- Over the last six years, Indian mutual fund investors have continued to increase their exposure to small-cap funds. Each year, the inflow in small cap funds has risen, while large-cap funds have not seen the same pace of growth.

Small-cap funds attracted Rs.1,386 crore in 2020, and it further 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, the inflow remained significantly lower than that of small-cap funds, according to annual data published in NSE Market Pulse, January 2026.

This trend appears to have continued in 2026. AMFI monthly data showed that small-cap funds led growth in the equity segment in Jul...