Mutual fund managers increasing investments in large-cap stocks

While AUM of mid-cap funds is increasing, data from Morningstar suggests fund managers have been moving more towards large-cap stocks.

Large-cap exposure has been in the range of 60-70% historically and has been going up for all open-ended funds. The recent shift towards largecaps is more pronounced in flexi-cap and ELSS funds. This indicates fund managers prefer large-cap stocks even as investors have been flocking towards mid-cap funds over the past few years in the hope of catching the huge rally.

Funds have steadily increased exposure to large caps