In the last 12 months, the mutual fund industry has seen a significant shift. Equity AUM stands at ₹39.13 lakh crore, with net inflows of ₹5.58 lakh crore. A large portion of these inflows—38%—has gone into sector and thematic funds, while 20% has been directed toward mid and small-cap funds. For the first time in history, sector funds, along with mid and small-cap funds, now represent about 40% of the total AUM. Multicap / Flexicap funds, historically crucial for investors, are now at their lowest risk levels in two decades, with their share at just 6%. Despite this, investors have not focused much on risk and have been rewarded for it. Understanding where the money is flowing reveals the current investor sentiment towards risk.