Small-cap mutual fund data: Net inflows jump 78% in 6 months amid corrections in Nifty50, Sensex

In the last six months, the net flows into small-cap funds have increased by over 78% from ₹3,209.33 crore in August 2024 to ₹5,720.87 crore in January 2025.

In January 2025, the net flows into small-cap funds jumped around 23% compared to the flows in December 2024.

Data shows that in January 2025, the net flow into small-cap funds was ₹5,720.87 crore compared to ₹4,667.70 crore in December 2024.

Net flows into small-cap funds since August 2024

Source: AMFI

Nifty 50 dropped from a high of 24,347 points on August 12, 2024 to 23,508 points on January 31, 2025. At the time of writing this article on February 12, 2025, Nifty 50 was trading at 23,065 points. Similarly, BSE Sensex declined by around 3% from 79,648 points on August 12, 2024, to 77,500 on January 31, 2025.

What does rising small-cap flows mean?

Investing in small-cap funds is considered risky as they invest mostly in stocks of small market capitalisation companies that are likely to correct more during market downturns.

However, the rising month-on-month net inflows into small-cap mutual funds indicate that recent market corrections have not shaken investors' confidence in these funds.

Nonetheless, investors should make their investment decisions based on their individual risk appetites, financial goals, and in consultation with SEBI-approved financial advisors.