New Delhi, Sept. 10 -- Small-cap mutual funds remained the biggest draw among equity fund categories in August, attracting nearly Rs 8,000 crore as investors continued to favour the segment despite fluctuations in overall equity flows.

According to the latest data released by the Association of Mutual Funds in India (AMFI), small-cap funds recorded net inflows of Rs 7,973.33 crore in August, compared with Rs 7,767.50 crore in July. The category registered a month-on-month increase of around 2.6 per cent.

The sustained inflow comes despite the relatively modest monthly increase. Small-cap funds had already attracted more than Rs 7,700 crore in July, meaning the category has maintained elevated inflows for two consecutive months.

Overall e...