Small-cap mutual fund assets rise 83% to Rs 2.43L cr in FY24

New Delhi, April 17

Influx of flows, upsurge in retail investors’ participation and bullish market conditions have boosted the assets for the small-cap mutual fund category to Rs 2.43 lakh crore mark at the end of March 2024, marking an 83 per cent surge compared to the previous year.

The surge in assets was complemented by an increase in the number of investors, with the number of folios reaching 1.9 crore in March 2024 from 1.09 crore a year ago, adding an investor base of 81 lakh. This shows investors’ inclination for small-cap funds.

Gopal Kavalireddi, Vice President, Research at FYERS, said the growth trajectory of India’s economy is attracting increased interest, leading many unlisted small-cap firms to seek support from the capital market. This trend offers promising opportunities for investors eyeing long-term growth prospects.

However, factors such as General Elections, monsoon forecasts, economic activity, inflation, GDP projections, and FY25 earnings growth are likely to influence small-cap company valuations and induce volatility in this segment, he added. — PTI

Saw Rs 94 cr outflow over Sebi concerns

Small-cap funds witnessed an inflow of Rs 40,188 crore in FY24, higher than Rs 22,103 cr inflow seen in FY23. In March, small-cap funds witnessed a net outflow for the first time in over two years at Rs 94 crore

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