Historically, the AUM share of mid-cap funds has lagged that of large-cap funds by about 5.5 percentage points.
Growth driven by market appreciation
In 2020, large-cap funds accounted for a maximum share of 20% of equity funds’ assets under management. Over the past year, their share decreased by 228 basis points, while that of mid-cap funds increased by 30 basis points.
Last year, mid-cap funds’ assets under management rose 64% to Rs 3.8 trillion. This was significantly faster than the 36% growth in assets under management of large-cap funds to Rs 3.6 trillion. The growth can be attributed to new assets under management. entries as well as market appreciation. Midcap funds reported an inflow of Rs 24,438 crore during the previous year compared to Rs 7,287 crore for largecap funds.
In addition, the Nifty 150 Midcap Index gained 55% in the 12 months to July 2024, boosting the AUMcompared with a 27.8% gain for the Nifty 50.
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