With mid cap and witnessing a decline in in the month of May, experts are of the opinion that the pace of inflows into small-cap and mid-cap funds saw some cooling compared to April, indicating a cautious undertone amid market valuations and global uncertainties.
“Also, investors need to be wary of inherent risks that tag along with small and mid-cap segments while making investment decisions,” said Himanshu Srivastava – Associate Director- Manager Research, Morningstar Investment Research India.
received an inflow of Rs 2,808 crore in May against an inflow of Rs 3,313 crore in April registering a decline of 15% on monthly basis. On the other hand, small cap funds received an inflow of Rs 3,214 crore in May against an inflow of Rs 3,999 crore in April witnessing a decline of 20% on the monthly basis.
“Mid- and small-cap flows have also eased slightly, though long-term investor appetite for these segments remains intact,” Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) said.
On an average, mid cap funds offered a return of 5.92% in the month of May with ICICI Prudential Midcap Fund offering the highest return of around 8.34%, followed by Canara Robeco Mid Cap Fund which gave 8.02% return in May. Quant Mid Cap Fund gave the lowest return of 2.81% in the same period.