New Delhi, Dec. 4 -- Large-cap funds have cornered a large proportion of the inflows into mutual fund schemes in the quarter ending 30 September 2019, according to a report from Morningstar that looked at domestic fund flows. The majority of the money went to three large-cap funds-Mirae Asset Large Cap, Axis Bluechip and ICICI Prudential Bluechip. Exchange-traded funds also saw an increase in the money flow during the quarter.

While some stocks in the large-cap space may be seen as overvalued and expensive given the divergence between the run-up in market prices and corporate earnings, it will continue to be a favoured space given the greater resilience these companies have during an economic slowdown. Also, foreign money primarily flows...