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.