Small- and mid-cap funds cooled, while SIP contributions remained resilient
Investors are increasingly turning to large-cap-oriented mutual fund schemes as market volatility and valuation concerns cool enthusiasm for mid- and small-cap funds.
Data from the Association of Mutual Funds in India (AMFI) showed net equity inflows fell 14 per cent month-on-month to ₹32,994 crore in October from ₹38,307 crore in September.
However, large-cap categories bucked the trend.
Inflows into large-and-mid-cap funds nearly doubled to ₹8,484 crore from ₹4,271 crore a month earlier, while large-cap funds attracted ₹1,032 crore, up 20 per cent from ₹859 crore.
In contrast, inflows into small-cap funds declined 29 per cent to ₹6,407 crore and mid-cap funds fell 36 per cent to ₹4,980 crore.
Balancing exposure
“The continued improvement in large-cap inflows was encouraging, particularly as valuations have become relatively attractive, suggesting investors are increasingly looking to balance their exposure across market capitalisations,” said Saugata Chatterjee, President and Deputy CEO, Nippon India Mutual Fund.
The trend points to investors rebalancing portfolios rather than exiting equities altogether. According to Suranjana Borthakhur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), small- and mid-cap funds accounted for about 34 per cent of total equity inflows in October, the lowest share in seven months, compared with around 57 per cent in July.
“Large-cap and large-and-mid-cap funds saw higher inflows as investors spread their allocations across categories rather than concentrating in one segment,” she said.
Despite volatile markets, SIP contributions remained resilient at ₹32,160 crore against ₹32,490 crore in September, while the number of contributing accounts eased marginally to 10 crore.
Venkat Chalasani, Chief Executive, AMFI, said SIP inflows staying above ₹32,000 crore reflect investors’ continued confidence in equities despite near-term market swings.
Navneet Munot, MD & CEO, HDFC AMC, said investors are increasingly looking beyond short-term volatility. “Indian investors have matured and treat volatility as part of the investment journey. The recent rally has shown once again that time in the market matters far more than timing the market,” he said.
Overall, the industry AUM increased marginally to ₹83.39 lakh crore last month against ₹82.64 lakh crore in September. Debt funds, meanwhile recorded net inflow of ₹1.13 lakh crore compared with outflow of ₹1.83 lakh crore in the previous month.
Published on November 11, 2026
