Small-cap fund inflows jump 39%, debt funds rebound in July

Every month, many people in India save money together in big baskets called mutual funds.

In July, people who invest through these funds made some big changes.

They put less new money into funds that buy shares of big companies, but much more into funds that buy shares of small companies — almost 39% more than in June.

Money that had been taken out of safe debt funds in June came rushing back in July.

Debt funds hold things like bonds, which are like IOUs from governments and companies.

People also kept putting in a steady amount every month through SIPs, which are like automatic piggy banks.

Because of all this, the whole fund industry got about ₹2.36 lakh crore of fresh money in July.

Some experts are happy about the interest in small companies, but others worry those stocks are getting too expensive.

They say prices could fall a lot if company earnings slow down.