Smallcap funds and midcaps received an inflow of Rs 4,945 crore and Rs 4,385 crore respectively in May. On a monthly basis, these categories saw a decline of 28% and 33% respectively.
“Although both categories witnessed lower inflows compared with April, the continued positive traction suggests that investors remain constructive on the long-term earnings potential of emerging businesses and are willing to maintain exposure to higher-growth segments despite valuation-related concerns,” said Srivastava.