Even among the limited basket of small and mid-cap stocks, fund managers allocated the record flows by increasing their holdings, with no notable rise in their cash holdings to signify difficulty in allocation.
Since small-cap and mid-cap funds invest in companies with relatively lower market capitalisation, their ability to absorb such flows also remains limited, according to Abhilasha Satale, fund manager at Quantum AMC.
Capping lumpsum flows into these schemes is one of the measures taken in order to ensure efficient allocation of funds, along with judicious investment of those coming from systematic investment plans without increasing sub-optimal positions and consolidating the fund positions, Satale told NDTV Profit.
Median holding in small-cap funds grew by six across 28 unique schemes, while for mid-caps, the count stood at nine across 29 unique schemes.
Among the small-cap category, Bandhan Small Cap Fund increased its number of holdings by 76 to over double the initial count.
For mid-cap schemes, WhiteOak Capital Mid Cap increased its unique holdings by 42 to cross triple digits at 112.
