Mid and small cap funds surge as large cap inflows fall 16% in April

Record inflows for smaller funds, while large caps lose ground

In April, investors shifted away from large-cap mutual funds as inflows fell 16%. Mid- and small-cap funds, meanwhile, pulled in record money and posted stronger returns, even as market volatility persists. Retail preferences appear to be tilting toward higher-risk categories amid valuation concerns, raising the question of whether this rotation can last.