Smallcap Funds Thrive Amidst Market Downturn: SIPs Drive Record Investments

• Mid-cap funds saw ₹49,939 crore investment (46% increase), while small-cap funds attracted ₹52,321 crore (53% rise) in 2025, despite a subdued market.
• Sensex and Nifty gained 9-10.5%, but BSE Midcap Index rose only 1.1%, and Smallcap Index fell 6.6%.
• SIPs are the 'real hero' behind sustained investments, with investors buying during dips due to strong past performance of mid-cap and small-cap stocks.
• Despite 86 mid-cap and 871 small-cap stocks being in the red, domestic investors continued to prefer these funds, increasing their share in total equity investment to over 14%.
• Experts note that mutual fund performance was significantly better than personal portfolios, with even worst-performing funds down only 5-6% compared to 20-30% for individual stocks.

Why It Matters: Despite market volatility and portfolio dips, smallcap funds saw record investments, driven by SIPs and long-term investor confidence.