By earn 
Understanding the AMFI Report
The latest report from the Association of Mutual Funds in India (AMFI) provides valuable insights into the assets under management (AUM) of various fund categories. A notable takeaway is the tremendous growth in small cap funds, which now constitute a staggering 90% of the large cap category.
The Shift in AUM Over the Years
Five years ago, small cap funds were hardly recognized, with AUM figures hovering around 50,000. Fast forward to today, and we see an exponential growth, with the AUM rising more than six times within this period. This remarkable increase signifies a shift in investor interest towards smaller companies, possibly driven by their potential for high returns.
Implications for Investors
The growth in small cap funds signals a changing landscape in the investment ecosystem. Investors may find that these funds can offer diversification benefits, as they often behave differently than their larger counterparts. However, it is essential to assess the associated risks, as smaller companies can also be more volatile. Understanding these dynamics will be crucial for making informed investment decisions in the current market scenario.
