The mutual fund industry has witnessed an interesting shift in investor preference during the April to December 2024 period. Traditionally, small-cap and mid-cap funds have been popular choices for high-growth potential. However, recent data indicates that thematic, multi-cap, and flexi-cap funds have attracted higher net inflows than small and mid-cap funds.
Sectoral and thematic funds have emerged as the top-performing category in terms of net inflows, attracting a staggering ₹1.32 lakh crore. These funds focus on specific industries or investment themes, allowing investors to capitalise on sector-specific growth trends. The substantial inflows suggest a growing interest in targeted investment strategies over broad-based equity allocations.
Multi-cap and flexi-cap funds have also witnessed significant investor participation. Multi-cap funds, which invest across large, mid, and small-cap stocks, saw inflows of ₹33,400 crore. Meanwhile, flexi-cap funds, offering dynamic allocation across market capitalisations, recorded net inflows of ₹33,200 crore. These categories provide diversification benefits, potentially explaining their appeal to investors in the current market scenario.
Large and mid-cap funds recorded inflows of ₹30,800 crore, positioning them as the 4th most preferred category. Their relatively stable nature, compared to pure mid-cap or small-cap funds, might have contributed to their steady inflows.
Despite their historical appeal, mid-cap and small-cap funds attracted relatively lower inflows compared to thematic and multi-cap categories. Mid-cap funds recorded ₹29,400 crore in inflows, while small-cap funds saw ₹28,100 crore.
Among all major equity fund categories, large-cap funds received the lowest net inflows at ₹15,100 crore.
The combined net inflows into equity mutual funds during April-December 2024 reached ₹3.23 lakh crore. Below is a detailed breakdown of net inflows across different equity fund categories:
| Equity Scheme | Net Inflow (₹ crore) |
| Sectoral/Thematic Funds | 1,31,757 |
| Multi Cap Fund | 33,444 |
| Flexi Cap Fund | 33,163 |
| Large & Mid Cap Fund | 30,811 |
| Mid Cap Fund | 29,415 |
| Small Cap Fund | 28,138 |
| Value/Contra Fund | 17,340 |
| Large Cap Fund | 15,079 |
| Dividend Yield Fund | 4,993 |
| Focused Fund | -319 |
| ELSS | -841 |
| Total | 3,22,980 |
While equity funds garnered significant interest, debt funds also saw notable inflows, with liquid and money market funds leading the way. Liquid funds attracted ₹74,800 crore, followed closely by money market funds with ₹69,200 crore in inflows.
Ultra-short duration funds ranked third with ₹20,650 crore in net inflows, while low-duration and corporate bond funds recorded ₹18,300 crore and ₹14,100 crore, respectively.
However, some debt fund categories faced outflows, including gilt funds with a 10-year constant duration, medium-duration funds, floater funds, credit risk funds, and banking & PSU funds.
The total net inflows into debt schemes during April-December 2024 stood at ₹2.19 lakh crore.
Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 18, 2025, 3:36 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
