Small-cap funds lead SIP surge as four equity categories draw ₹16,096 crore

Small-cap equity funds emerged as the clear winner in August's systematic investment plan (SIP) race, attracting ₹5,012 crore in fresh contributions from retail investors seeking exposure to India's smaller listed companies. The strong performance underscored sustained investor appetite for equity-oriented schemes despite periodic market volatility.

Across the broader landscape, four key equity fund categories—small-cap, mid-cap, flexi-cap, and one additional segment—collectively mobilised ₹16,096 crore in SIP inflows during August. This combined figure represented nearly half of total SIP collections across all mutual fund categories in the month, highlighting the concentration of investor interest in growth-oriented equity schemes.

Mid-cap and flexi-cap funds followed small-cap offerings as the next preferred destinations for SIP investors. The strong showing in these categories reflects investors' continued confidence in India's equity markets and their preference for schemes offering exposure to India's expanding corporate landscape.

The sustained momentum in SIP collections, particularly in higher-growth equity categories, mirrors broader trends in India's mutual fund industry, where systematic investing has become increasingly popular among retail investors seeking disciplined wealth creation strategies.