Three smallcap funds corner bulk of category inflows: Elara Capital report

One scheme has raked in over half of the inflows in this year so far, says a report by Elara Capital

Over half of the inflows into the smallcap category in calendar year 2024 has gone to one single scheme, Elara Capital said in a report, adding that three schemes have accounted for almost all of the inflows this year.
 

“50 per cent of the CYTD (calendar year to date) smallcap inflows and 60 per cent of last three months inflows are concentrated in one single scheme. Just 3 smallcap schemes have taken 80 per cent and 100 per cent of last three month and CYTD smallcap inflows respectively,” the brokerage said.
 

The report has not mentioned the names of the schemes. The report shows that inflows into 16 other schemes was offsetted by the outflows from the rest of the eight funds.

Smallcap funds have been in the spotlight since the start of calendar year 2024 as they continued to garner the highest proportion of net equity inflows despite elevated valuations. The regulator Securities and Exchange Board of India (Sebi) had even asked fund houses to make additional disclosures. Several schemes have placed restrictions on the amount investors can put into their smallcap fund.

The inflows into smallcap funds have moderated in the past few months but they remain one of the top grossing categories. In May, smallcap funds received a net of Rs 2,724 crore, the third highest among active equity scheme categories after sectoral funds and flexicap schemes.

The inflows, according to MF officials, have been driven by strong performance of smallcap funds across time frames.

Recovery in demand: Smallcap funds remain among top grossers
Month	Net inflow (Rs crore)
Jun-23	5472
Jul-23	4171
Aug-23	4265
Sep-23	2678
Oct-23	4495
Nov-23	3699
Dec-23	3858
Jan-24	3257
Feb-24	2922
Mar-24	-94
Apr-24	2209
May-24	2725

Source: Amfi