It is now exactly a year since the markets started correcting in late September 2024 and despite the recovery from the lows, indices are still in the red on a one-year returns basis.

In an atmosphere where global cues are challenging with penal trade tariffs, exporters being hit, AI-related job disruptions and geopolitical tensions, you would expect investors to be exercising caution in going down the market capitalisation curve. Also, FPIs are continuing with their selling spree.

However, domestic mid- and small cap mutual funds are continuing to receive strong inflows over the past 12 months.

Small-cap schemes have received ₹93,499 crore in gross inflows and ₹51,874 crore in net inflows (after redemptions) over the last 12 months till August 2025, according to data from AMFI and Frank

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