small-cap mutual fund category surge 83 percent compared to previous year at rupees 2.43 lakh crore mark

Small Cap Mutual Fund: The number of mutual fund investors in the country is increasing rapidly and the number of demat account holders is also increasing rapidly. Leaving aside the fall of the stock market last week and this week, investors' money has increased in the market. Due to this, investors' money is coming through the equity route and smallcap and midcap stocks are getting good returns in the market. Due to this, investment in smallcap and midcap mutual funds is also increasing.

Big jump of 83 percent in smallcap mutual fund assets

Surge in participation of retail investors and bullish market, assets of smallcap mutual fund category increased to Rs 2.43 lakh crore at the end of March 2024. This is an increase of 83 percent on annual basis. The increase in assets was supported by the increase in the number of investors. In March 2024, the number of folios reached 1.9 crore and increased by 81 lakh. It was Rs 1.09 crore a year ago. This clearly shows the increasing inclination of investors for small-cap funds.

Small-cap funds see inflow of Rs 40,188 crore

Small-cap funds saw an inflow of Rs 40,188 crore in FY 2023-24, which is more than Rs 22,103 crore recorded in the previous financial year. However, in the month of March, small-cap funds also saw net selling of Rs 94 crore for the first time in two years.

According to data from the Association of Mutual Funds in India (AMFI), assets under management (AUM) of small-cap mutual funds stood at Rs 2.43 lakh crore at the end of March 2023 and Rs 1.33 lakh crore at the end of March 2022.

Some concerns will also be monitored

Factors like general elections, monsoon forecast, economic activity, inflation rates, GDP projections and earnings growth for FY 2024-25 can impact small-cap company valuations and bring volatility in this segment. Bullish about the stock market since, this provides support to the expectations of continuation of the rise.

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