Mumbai, Sept. 22 -- Higher returns, structural tailwinds, and increasing investor confidence, backed by recent government initiatives and regulatory reforms, have made small- and mid-caps more attractive to retail investors, ICRA Analytics said today.
While large-cap funds provide stability, lower volatility, and long-term capital preservation, their growth is often incremental and tied to macroeconomic cycles.
However, small and mid-cap firms have greater room to expand, innovate, and capture market share, leading to higher earnings growth. This seems to be encouraging retail investors to invest in such schemes.
This is reflected in the surge in inflows into these funds. Mid-cap and small-cap categories reported robust growth in net inf...