Small- and Mid-Cap Mutual Funds Attract ₹80,255 Crore in H1 FY27

Key Takeaways

• Small-cap and mid-cap mutual funds attracted combined inflows of ₹80,255 crore during April–September 2026, according to Accord Fintech data.
• Small-cap funds received ₹42,212 crore, representing 22.6% of equity fund inflows, while mid-cap funds collected ₹38,043 crore, accounting for 20%.
• Large-cap funds attracted ₹4,575 crore during the same six-month period, accounting for approximately 2% of equity fund inflows.

Small- and Mid-Cap Funds Lead Equity Mutual Fund Inflows

Small- and mid-cap mutual funds received a combined ₹80,255 crore during the first half of financial year 2026–27, reflecting a considerably larger share of equity fund inflows than large-cap schemes.

The figures were reported by The Economic Times on 3 November, based on data compiled by Accord Fintech.

Between April and September 2026, small-cap mutual funds attracted ₹42,212 crore, while mid-cap schemes recorded inflows of ₹38,043 crore.

Together, the two categories represented approximately 42.6% of equity mutual fund inflows during the period.

Large-cap schemes attracted ₹4,575 crore.

Category-Wise Inflows During H1 FY27

The data covers the first six months of FY27 and should not be interpreted as monthly inflows for October or November 2026.

Small-cap funds recorded their highest share of equity inflows since the first half of FY24, while mid-cap funds reached a five-year high in their share, according to the reported dataset.

Small- and Mid-Cap Assets Increase

The combined net assets under management of small- and mid-cap mutual funds increased by approximately 24% year-on-year to around ₹9.8 lakh crore as of September 2026.

Assets under management change because of both investor transactions and movements in the market value of existing holdings.

Therefore, the increase in category assets cannot be attributed entirely to fresh investments.

The data also provides a comparison between investor allocation patterns and market performance during the first half of FY27.

Mid- and Small-Cap Indices Outperformed Large-Cap Benchmarks

During April–September 2026, the BSE 150 MidCap Index advanced approximately 13%, while the BSE 250 SmallCap Index increased around 24%, according to the market figures reported alongside the fund-flow study.

The BSE 100 rose approximately 3.6%, while the Sensex gained around 0.7% over the same period.

These are index-level price movements, not returns earned by every mutual fund within the corresponding categories.

Individual fund performance depends on portfolio holdings, scheme expenses, cash positions and investment decisions.

What the Flow Data Indicates

The first-half numbers show that investors allocated a larger share of equity mutual fund inflows to smaller-company categories than to large-cap schemes.

However, the figures do not establish that this allocation trend will continue.

Small- and mid-cap funds generally have exposure to companies with different liquidity characteristics and market capitalisations from large-cap funds.

The H1 FY27 dataset provides an industry-wide record of investor flows and changes in assets, rather than a forecast of future category returns.

Verification: Accord Fintech data reported by The Economic Times on 3 November 2026.

The Economic Times