India, Nov. 13 -- The mutual funds segment is buying into IPOs (Initial Public Offerings), and small-cap stories. According to Ventura Securities' 'Mutual Fund Quarterly Booklet (Sept 2025),' the industry showed "robust participation in newly-listed companies, with total investments amounting to over Rs 8,752 crores across recent IPOs." In addition, "a majority of these new entrants fall under the small-cap category, with only one categorised as a mid cap." Thus, there is an urge among the mutual funds to tap into narratives of long-term wealth creation, by buying stocks of scalable businesses that may become tomorrow's mid-caps, and market leaders.

Ventura Securities states that while nine mid-caps can possibly become large-caps, there ...