New Delhi, June 4 -- Even as the large-cap stocks have struggled this year, pulling the benchmark Nifty 50 almost 11% lower year-to-date (YTD), the mid-caps and small-caps have emerged as unlikely winners in a market ravaged by the Middle East conflict and threats of earnings slowdown, along with a weak Indian rupee and foreign investor selling.

Small-cap funds drew record Rs.6,562 ‌crore of inflows in April, according to data from the Association of Mutual Funds in India. Large-cap funds, by contrast, lost some shine, with inflows dropping 15.3% ​to Rs.2525 crore, underscoring a sharper hunt for growth and value beyond ​India's biggest stocks.

For the year, the Nifty Smallcap 100 index is up 2.46% and remains in the g...