{
  "id": 17882721,
  "title": "Small & midcap funds remain top bets for investors in first half of FY27",
  "url": "https://urgent.news/2026/11/03/small-midcap-funds-remain-top-bets-for-investors-in-first-half-of-fy27",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T00:24:51.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/mf/mf-news/small-midcap-funds-remain-top-bets-for-investors-as-largecap-inflows-slump/articleshow/135477565.cms"
  },
  "original_language": "en",
  "account": "Investors have poured significant funds into small and mid-cap equity funds during the first half of fiscal year 2027, with their share of total equity inflows reaching a five-year high of 20%, according to Accord Fintech data. Small-cap funds attracted ₹42,212 crore and accounted for 22.6% of equity inflows, their peak percentage since the first half of fiscal year 2024. Mid-cap funds received ₹38,043 crore, making up 20% of equity inflows, also a five-year high. Large-cap funds, on the other hand, saw a decline, receiving only ₹4,575 crore and contributing just 2% to total equity inflows. Higher returns have attracted investors to small and mid-cap funds; BSE 150 MidCap Index rose 1,877 points (13%), while BSE 250 SmallCap Index gained 1,349 points (24%). Large-cap funds advanced 853 points (3.6%) and the Sensex rose 533 points (0.7%). Experts argue that strong inflows into mid- and small-cap funds do not necessarily imply expensive valuations; rather, corporate earnings growth is crucial in determining stock prices. Despite flows into mid and small caps, multiples have declined, not risen, according to Hari Shyamsunder, VP & Senior Institutional Portfolio Manager - India Equities at Templeton Global Investments. Higher inflows have also increased the share of small and mid-cap funds in equity assets under management (AUM), reaching nearly 24% year-on-year to ₹9.8 lakh crore as of September 2026, accounting for 26% of equity AUM from 23.5% a year earlier.",
  "summary": "During the first half of FY27, mid-cap funds received ₹38,043 crore and small-cap funds attracted ₹42,212 crore. This increased their share in total equity inflows to 20% and 22.6%, respectively. In contrast, large-cap funds saw a decline with inflows of just ₹4,575 crore. The combined net Assets Under Management (AUM) of small and mid-cap funds rose 24% year-on-year. Overall, total equity AUM…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}