Mid And Small‑Cap Mutual Funds Witnesses AUM Growth; Ongoing Market Volatility May Impact Near Term Outlook: ICRA Analytics.

Mumbai, 23rd of March 2026 : Total assets under management (AUM) of mid-cap funds registered a five-year CAGR of 32.41 per cent at Rs 4.62 lakh crore in February 2026, as against Rs 1.13 lakh crore in Feb 2021. The AUM of small-cap funds posted a five-year CAGR of 39.93 per cent at Rs 3.64 lakh crore in Feb 2026, as compared with Rs 67,764 crore in Feb 2021. Net inflows into mid cap funds stood at Rs 4,003 crore while the same into small cap stood at Rs. 3,881 crore in Feb-26, as against net outflows of Rs. 99 crore and Rs. 452 crore in Feb-21.

	February 2021	February 2022	February 2023	February 2024	February 2025	February 2026
Mid Cap Net AUM (In Rs. Crore)	1,13,515	1,52,548	1,83,246	2,95,683	3,40,657	4,62,098
Small Cap Net AUM (In Rs Crore)	67,764	1,00,407	1,31,568	2,49,071	2,73,877	3,63,537

Source: AMFI

Scheme Name	NAV	NAV (Date)	1 Year	3 Years	5 Years
Quant Small Cap Fund – Growth	236.6283	27-Feb-2026	-2.4433	18.0157	26.4039
Nippon India Small Cap Fund – Reg – Growth	162.1622	27-Feb-2026	0.5231	20.2527	25.4792
Motilal Oswal Midcap Fund – Reg – Growth	89.0345	27-Feb-2026	-4.2892	22.4641	25.1681
HDFC Mid Cap Fund – Growth	202.5750	27-Feb-2026	12.7147	25.3273	24.5825
Bandhan Small Cap Fund – Reg – Growth	44.7550	27-Feb-2026	4.0634	28.5912	23.9410
Edelweiss Mid Cap Fund – Growth	102.9050	27-Feb-2026	10.6606	25.8578	23.3477
Nippon India Growth Mid Cap Fund – Reg – Growth	4,312.4386	27-Feb-2026	10.0123	24.8364	23.3211
HDFC Small Cap Fund – Growth	133.8630	27-Feb-2026	5.2877	19.1397	23.2657
Invesco India Smallcap Fund – Reg – Growth	41.0400	27-Feb-2026	1.0311	22.2127	23.0659
Mahindra Manulife Mid Cap Fund – Reg – Growth	34.0847	27-Feb-2026	7.5785	23.8944	22.6125

Source: MFI360Explorer

Data as on Feb 27, 2026, Less than 1-year Absolute returns, Greater than or Equal to 1 year Compound Annualized returns. Top 10 funds based on 5-year CAGR return

The ongoing geo-political tensions and recent foreign fund outflow from Indian equity markets may impact the performance of mid and small cap funds in near term. Investors of mid and small-cap mutual funds are expected to adopt a cautious stance amid the ongoing market volatility.

Disciplined investing through SIPs (Systematic Investment Plan) and a long investment horizon can help investors benefit from compounding. Retail participation in mutual fund industry through SIP channel witnessed sustained momentum. The overall SIP inflows in February 2026 witnessed a strong growth with contributions increasing by nearly 14.79 per cent at Rs 29,845 crore as compared with Rs 25,999 crore in February 2025.

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