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Rs 3,730 crore: Inflows into large-cap and flexi-cap funds in January 2024
In January 2024, large-cap and flexi-cap funds saw net inflows of Rs 3,730 crore. For the first time in 17 months, these lower-risk equity funds received more investment than small-cap funds, which attracted Rs 3,260 crore.
Throughout 2023, large-cap and flexi-cap funds collectively garnered Rs 4,500 crore, with the large-cap benchmark indices – Sensex and Nifty50 – rising by nearly 20 per cent. Small-cap funds received nearly Rs 40,000 crore, with the Nifty Small Cap 100 index rising by 55.6 per cent.
This sharp increase in small-cap valuations has prompted analysts to recommend caution. Investors are advised to review their equity allocations. If their portfolio is heavily weighted towards small and mid-cap funds, they should book profits in these areas and shift towards large-cap funds. Failure to rebalance could expose them to higher risk and potential losses if a market correction occurs in the small- and mid-cap segments.
First Published: Feb 16 2024 | 10:28 AM IST