Midcap funds attract record ₹5,331cr in August: What's driving inflows
Midcap mutual funds just hit their highest-ever monthly inflow, with ₹5,331 crore pouring in during August 2024.
Over the past decade, SIPs in the Nifty Midcap 150 TRI have averaged a solid 17.4% annual return.
Midcaps have outperformed large-caps recently
Midcap funds have delivered impressive returns—21.4% over the last year and nearly the same in just six months—making them a favorite for investors looking to grow wealth.
They also help spread risk better than large-caps, and steady SIP contributions show investors aren't losing confidence despite market ups and downs.
Midcaps are growing profits faster than large-caps
A recent valuation correction made midcaps more attractive: price-to-earnings ratios dropped from about 35x last September to around 28x now.
Plus, midcaps are growing profits faster than large-caps (16-18% vs. about 8-9% last year), and offer more stability than small-caps—especially in sectors like EMS, hospitals, and discretionary consumption that are seeing strong demand.