Mutual funds hit record inflows as smallcaps draw biggest share

Imagine a big piggy bank where lots of people put their money together, and experts use it to buy shares of companies.

In India, this kind of piggy bank, called a mutual fund, received more money in July than ever before.

The total amount people invested was a record Rs 85.75 lakh crore.

Most of the new money went into funds that buy shares of companies.

Funds that buy shares of smaller companies got the most money of all.

That is because smaller companies can grow very fast, even though they are riskier.

Big companies and rich people still hold most of the money in these funds.

Regular families now own about a quarter of the total.

The experts managing the money say this shows Indians are getting more comfortable with stock market investing, but they also warn that a market downturn could make these investments lose value quickly.