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Mid-Cap Funds Outshine All: The Only Winners of December 2024
While most equity categories saw price depletion in December 2024, mid-cap funds stood tall with ₹5,093 Cr inflows and ₹4,809 Cr price gains — a rare dual boost that lifted AUM by nearly ₹9,900 Cr. Find out what drove this outperformance and what it signals for 2025.
Written by: SERNET Research Team
Table of Content
Did you know that mid-cap funds were the sole winners of December 2024?
The monthly funds flow report put out by AMFI each month has a lot of intelligence hidden in it. One such key data point to focus is the decomposition of the flows. We normally look at flows in isolation, but you can get finer insights if you combine the flows along with the change in AUM on a month-on-month basis. That breaks up how much of the AUM shift is coming from flows, and how much from price changes.
| Active Equity Funds (Dec-24) |
AUM Change (₹ in Crore) |
Net Flow (₹ in Crore) |
Price Change (₹ in Crore) |
PC/NF Ratio (X Times) |
| ELSS | -2,771.48 | 187.98 | -2,959.47 | -15.74 |
| Focused Fund | -1,192.04 | 455.80 | -1,647.83 | -3.62 |
| Large Cap Fund | -4,008.61 | 2,010.98 | -6,019.59 | -2.99 |
| Dividend Yield Fund | -492.77 | 277.19 | -769.96 | -2.78 |
| Value Fund/Contra Fund | -1,180.27 | 1,513.87 | -2,694.14 | -1.78 |
| Flexi Cap Fund | 2,699.32 | 4,730.71 | -2,031.38 | -0.43 |
| Small Cap Fund | 2,853.87 | 4,667.70 | -1,813.83 | -0.39 |
| Large & Mid Cap Fund | 2,548.93 | 3,811.81 | -1,262.88 | -0.33 |
| Sectoral/Thematic Funds | 10,987.72 | 15,331.54 | -4,343.82 | -0.28 |
| Multi Cap Fund | 2,286.08 | 3,075.11 | -789.03 | -0.26 |
| Mid Cap Fund | 9,902.20 | 5,093.22 | 4,808.97 | 0.94 |
| Total of Equity Funds | 21,632.95 | 41,155.91 | -19,522.96 | -0.47 |
Data Source: AMFI
The table focuses on active equity funds in December 2024. Total flows into active equity funds in December 2024 stood at ₹41,156 crore, but AUM accretion was just ₹21,633 crore. That is because of price depletion to the tune of ₹(19,523) crore in the month of December 2024. An extreme case is large cap funds, which saw net inflows of ₹2,011 crore in Dec-24, but due to the price depletion of ₹(6,020) crore, the overall AUM of large cap funds depleted by ₹(4,009) crore.
Apart from large cap funds, the impact was also quite stark on ELSS funds and focused funds. However, the sectoral / thematic category saw less than a third of its flows taken away by price depletion. Similarly, even in case of multi-cap funds and small cap funds, you saw just about one-third of the inflows taken away by the impact of falling prices.
The Real Positive Story Was In Mid-cap Funds
However, if you want to look at the real stand-out performer in the month of December 2024, it was the mid cap funds. Look at the numbers. During the month of December, mid-cap funds saw net inflows of ₹5,093 crore. However, due to the limited impact of the market correction on the mid-cap stocks, the mid-cap funds actually saw price accretion of ₹4,809 crore on a MOM basis. The net impact was that the AUM of mid-cap funds showed an overall accretion of ₹9,902 crore; making it an outperformer on both counts. Normally, this is a signal of which way the wind is likely to blow in future!
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