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Small Caps Roar: Investors Flock to High-Growth Stocks

Summary

  • Small-cap funds attracted nearly ₹25,200 crore in the first four months of FY27.
  • Mid-cap funds gathered ₹23,218 crore in the same period, showing strong investor interest.
  • Large-cap funds attracted significantly less capital, indicating a shift in investor preference.
Small Caps Roar: Investors Flock to High-Growth Stocks

Investors are increasingly favoring small-cap and mid-cap stocks over large-cap equities in the current fiscal year, driven by improving earnings and market liquidity. In the first four months of FY27, small-cap funds attracted nearly ₹25,200 crore, almost half of the total invested in FY26. Mid-cap funds garnered ₹23,218 crore during the same period, representing substantial investor interest.

In contrast, large-cap funds attracted a mere ₹4,863 crore in the first four months of FY27. This trend suggests a growing investor appetite for risk, as small and mid-cap stocks are inherently more volatile. The BSE 250 SmallCap Index rose 6.8% and the BSE 150 MidCap Index gained 9.4% over the past 12 months, while the BSE Sensex fell 4.4% and the BSE 100 Index remained flat.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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