Despite market volatility, mid, smallcap funds attract ₹53K cr in H2FY25

Investors poured in over ₹83,000 crore into mid and smallcap funds in FY25

Midcap and smallcap funds have demonstrated remarkable resilience, continuing to attract robust inflows despite recent market volatility. These funds garnered more than ₹53,000 crore in the second half of 2024-25 (H2FY25), even as the broader market faced a steep correction. This sustained interest, experts said, had provided crucial support to the mid and smallcap segments — a trend unlikely to reverse unless long-term returns disappoint.

 

“Despite the correction we saw till the end of February, SIP (systematic investment plan) inflows into smallcap and midcap funds did not moderate meaningfully in February and March. This is contrary to expectations. The continued