3 weeks ago
Small-cap funds gain ₹7,768 crore; large-cap funds see first outflow
Imagine people have piggy banks for company shares, called mutual funds.
In July 2026, savers put a little less new money into these funds overall than in June.
But they changed where the money went: small-cap funds, which invest in smaller companies, received ₹7,768 crore — about 39% more than the month before.
Large-cap funds, which invest in the biggest companies, saw money leave: ₹1,322 crore was taken out.
That was the first monthly outflow for large-cap funds since December 2023.
Fund managers for small-cap funds bought more stocks than they sold, especially shares of companies like Pine Labs and Union Bank of India.
They sold shares of companies like Ather Energy and RBL Bank.
Sector-wise, they liked finance and industrial manufacturing companies most, and moved money out of electrical equipment and automobiles.
Small-cap funds can swing up and down more than big ones, so experts remind investors to think about risk before following the crowd.
Net inflows into core equity mutual funds fell 14.8% month-on-month to ₹24,700 crore in July, from about ₹28,970 crore in June.
Small-cap funds attracted ₹7,768 crore in July, up 38.7% from June, while large-cap funds recorded a ₹1,322 crore outflow, their first monthly outflow since December 2023.
Data from the top 23 small-cap fund houses showed ₹18,166 crore of net purchases versus ₹11,257 crore of net sales, with exposure raised in 322 stocks and reduced in 180.
Top small-cap additions included Pine Labs (₹422 crore), Union Bank of India (₹410 crore) and Adani Enterprises (₹392 crore), while the biggest reductions were Ather Energy (₹752 crore) and RBL Bank (₹556 crore).
Finance saw the highest small-cap sector inflows at ₹1,493 crore, while Electrical Equipment recorded the largest outflow at ₹871 crore.
- Who
- Indian mutual fund investors and fund managers of the top 23 small-cap fund houses.
- What
- Small-cap funds received ₹7,768 crore in inflows while large-cap funds saw a ₹1,322 crore outflow in July.
- Where
- India.
- When
- July 2026, compared with June 2026.
- Why
- Investors were not necessarily moving away from equities altogether but were changing where they allocated fresh money.
Key facts
- Core equity fund inflows (July)
- ₹24,700 crore, down 14.8% month-on-month
- Small-cap fund inflows (July)
- ₹7,768 crore, up 38.7% from June
- Large-cap fund flows (July)
- ₹1,322 crore outflow, first since December 2023
- Mid-cap fund inflows (July)
- ₹6,192 crore, up 1.7%
- Small-cap net purchases (top 23 houses)
- ₹18,166 crore purchases vs ₹11,257 crore sales
- Largest small-cap addition
- Pine Labs, ₹422 crore
- Largest small-cap reduction
- Ather Energy, ₹752 crore
- Top sector flows (small-cap)
- Finance +₹1,493 crore; Electrical Equipment -₹871 crore











