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Small Cap Funds Lead SIP Returns Amid Market Volatility

· Business · Economic Times, LiveMint

Systematic investment plans across major equity fund categories have delivered steady returns over the past two years despite struggling benchmark indices. Small-cap funds led performance with an average two-year return of 14.25%, followed by multi-asset allocation funds at 8.51% and midcap funds at 7.85%. Retail investor monthly contributions surged by approximately 37%, rising from Rs 23,547 crore in August 2024 to Rs 32,297 crore in August 2026. Barring large-cap funds, most scheme categories outperformed the SIP returns of their respective benchmark indices.

Why it matters

The sustained growth in monthly SIP inflows demonstrates retail investor confidence in Indian equity markets despite broader market volatility and sluggish benchmark indices. This steady capital flow provides crucial support to domestic asset management companies and market stability.

Read the original report — Economic Times

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