Mutual fund trends: Mid and small-cap flows rise, experts urge caution on thematic funds

Investors are showing more interest in mid-cap and small-cap mutual funds even as overall equity inflows slowed in April, according to data from the Association of Mutual Funds in India (AMFI). Kaustubh Belapurkar, Director, Fund Research at Morningstar Investment Adviser India, and Juzer Gabajiwala, Director at Ventura Securities, said strong systematic investment plan (SIP) inflows and improving performance have supported these categories, while interest in sectoral and thematic funds has cooled as investors grow more cautious.