INCOME TAX15 Sept 2026
Small caps continue to attract strong inflows. But can investors handle the volatility? What history reveals
Small-cap funds drew ₹7,973 crore in August. Equity fund inflows rose 19% to ₹29,328 crore, and monthly SIP (systematic investment plan) contributions hit a record ₹32,297 crore. FundsIndia data shows the Nifty Smallcap 100 fell over 30% on 36% of days, against 4% for the Sensex. Deep dips are normal here, so invest only if you can stay through them.
Key Statutory Highlights
- In August, small-cap mutual funds attracted ₹7,973 crore, while overall equity mutual fund inflows rose nearly 19% to ₹29,328 crore.
- FundsIndia data shows the Nifty Smallcap 100 fell more than 30% from a previous peak on 36% of observed days, compared with just 4% for the Sensex.
- In 2020, the Nifty Smallcap 100 fell as much as 38% during the year but still ended with a positive 16% return.
Actionable Advice for Taxpayers / Founders:Before putting more money into small-cap funds, check honestly whether you can stay invested through a 30% fall without selling. Keep your small-cap share modest and review it with your advisor.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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