Mutual Funds Invest Heavily in IPOs, Smallcaps Lead Growth

In the June quarter of 2025, mutual funds put a lot of money, over ₹5,294 crore, into new companies that were just starting out (IPOs).

Most of this money went into small companies, which are businesses that are expected to grow quickly.

Funds also did well compared to the overall market, with many performing better than a major stock index.

Small-cap funds saw the biggest increase in the amount of money they managed, showing that investors are excited about the potential for high returns in these types of companies.