S Naren’s warning impact? Smallcap mutual fund inflows decline 35% in February

Small-cap mutual fund inflows fell 35% month-on-month to Rs 3,722 crore in February, down from Rs 5,720 crore in January, amid S. Naren’s caution on small- and mid-cap stocks. However, yearly inflows remain 27% higher than February 2024. Experts believe the post-COVID rally in small-cap schemes has paused, signaling a shift in investor sentiment.

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