Archive · 18 Jul 2025
Value Funds Emerging as Investors' Next Favorite
Imagine you're buying toys.
For a while, everyone loved the fast, flashy toys (smallcap and midcap funds), which gave huge returns.
But now, those toys are getting expensive, so people are a little worried.
Investors are now looking at a different type of toy, value funds, which are like buying well-made, but less popular toys, that are on sale, hoping they become popular over time.
These are companies that are fundamentally strong but undervalued.
These funds offer steady growth.
Because the market is a little uncertain, investors are seeking stability and a middle ground.
Smallcap and midcap funds saw record inflows in January 2025.
Inflows to midcap and smallcap funds declined in May 2025.
Value funds attracted a modest but increasing inflow in January 2025.
Value funds focus on companies trading below their intrinsic value.
Value funds offer a balance between growth and stability.
- Who
- Investors are rebalancing their portfolios.
- What
- Investors are shifting focus from smallcap and midcap funds to value funds.
- When
- Smallcap and midcap fund inflows peaked in January 2025, then slowed by May 2025; Value funds saw a modest increase in January 2025.
- Where
- The article discusses market trends in India.
- Why
- Investors are seeking a balance between growth and stability amid market volatility and rising valuations.
Smallcap/Midcap Funds
Value Funds
Risk vs. Reward
Smallcap/Midcap Funds
Offer high growth potential and diversification.
Value Funds
Experience high volatility and are sensitive to market cycles.
- Smallcap fund inflows (Jan 2025)
- ₹5,720.87 crore
- Midcap fund inflows (Jan 2025)
- ₹5,147.87 crore
- Midcap fund inflow decline (May 2025)
- 15% month-on-month
- Smallcap fund inflow decline (May 2025)
- 20% month-on-month
- Value fund inflows (Dec 2024)
- ₹1,514 crore
- Value fund inflows (Jan 2025)
- ₹1,556 crore