In April, large-cap mutual funds in India recorded a 16% decline in inflows, amounting to around ₹2,525 crore, down from ₹2,997 crore in March. This decline reflects a weakened appetite for large-cap companies among investors. Conversely, mid-cap and small-cap funds attracted inflows of approximately ₹6,551 crore and ₹6,885 crore, respectively, marking significant growth of 8% and 10%. The shift in investor preference suggests a growing interest in riskier assets, as retail investors continue to seek higher-growth opportunities despite ongoing market volatility. Nitin Agrawal, CEO of InCred Money, noted that the trend towards small-cap funds, which typically experience sharper drawdowns during market stress, indicates either renewed confidence in India's growth potential or a strategic allocation by investors recognizing value in smaller companies. In April, the Nifty50 index gained 5.81%, while the Nifty Midcap 150 and Nifty Smallcap 250 indices saw gains of 10.72% and 13.43%, respectively. Among the funds, the Quant Large Cap Fund led large-cap returns at 11.56%, while the Bank of India Small Cap Fund achieved the highest return in the small-cap category at 16.62%.