Smallcap mutual funds attract 44% of equity inflows despite stretched valuations. Should investors be cautious?

· economictimes.indiatimes.com

Investor confidence in small and mid-cap stocks is strong, with rising valuations when compared to large caps. Last month, small and mid-cap funds garnered Rs 16,873 crore, accounting for 44% of the total equity fund inflows. Despite a drop in equity fund assets, overall inflows have seen a 31% uptick, indicating healthy market dynamics.

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Investor appetite for small and mid-cap stocks remains s...


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