# Smallcap mutual funds attract 44% of equity inflows despite stretched valuations. Should investors be cautious?

- Source: Economic Times
- Published: 2026-10-24T08:04:56+00:00
- Category: Business
- Original: https://economictimes.indiatimes.com/mf/mf-news/smallcap-mutual-funds-attract-44-of-equity-inflows-despite-stretched-valuations-should-investors-be-cautious/articleshow/135165538.cms
- Canonical: https://groundlevelnews.com/story/smallcap-mutual-funds-attract-44-of-equity-inflows-despite-stretched-v-dd089b/

Investor confidence in small and mid-cap stocks is strong, with rising valuations when compared to large caps. Last month, small and mid-cap funds garnered Rs 16,873 crore, accounting for 44% of the total equity fund inflows. Despite a drop in equity fund assets, overall inflows have seen a 31% uptick, indicating healthy market dynamics.

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