Investor preference appears to be shifting towards riskier categories such as mid- and small-cap mutual funds compared to large cap funds, as per the latest data released by the Association of Mutual Funds in India (AMFI) which showed a sharp divergence in inflow trends across market-cap categories.
According to the monthly data released by AMFI, large-cap mutual funds witnessed a 16% decline in inflows in April while mid-cap and small-cap funds continued to attract strong investor interest with monthly growth of 8% and 10%, respectively.