Flexicaps pull ahead as SMIDs lose steam

Category logs highest net inflows for four consecutive months, adds most number of folios in March, April

- ABHISHEK KUMAR

With changing market conditions, investor interest is beginning to shift from smallcap and midcap (SMID) funds to largecap-oriented schemes, particularly flexicap funds.

Flexicap funds have led the active equity inflows chart (excluding the thematic category) for the past four months, with the gap widening in recent months.

In April, flexicap funds saw net inflows of ₹5,542 crore—39 per cent more than smallcap funds, which registered the second-highest inflows at ₹4,000 crore.

Flexicap and largecap funds—two of the relatively lower-risk categories—have together drawn more inflows than smallcap and midcap funds in each of the past four months.

This marks a significant departure from the trend seen in recent years, when SMID funds captured the bulk of inflows.

Flexicap funds have also taken the lead in new investment account, or folio, additions.