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Small-cap, arbitrage funds buck 'low inflow' trend this calendar

Small-cap funds benefit from better valuations and performance track record, say analysts

Between December 2020 and February 2021, traders were supposed to maintain at least 25 per cent of the peak margin
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Abhishek Kumar Mumbai

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Two equity funds at the opposite ends of the risk matrix — small-cap and arbitrage — bucked the ‘low inflow’ trend in May this calendar year 2023 (CY23) to receive the highest net inflows in recent years.

The Rs 3,280-crore net inflows into small-cap schemes in May was the highest for the category since the mutual fund (MF) industry started releasing fund-wise inflow data in April 2019.

Arbitrage schemes raked in a net Rs 6,640 crore — the highest since July 2021.

The inflows into small-cap schemes have been on a steady rise the past six months mostly due to