Midcap and Small Cap Mutual Fund Investments Analysis
In the ever-evolving world of finance, investors are constantly on the lookout for promising opportunities. Even as equity markets scale all-time highs, mutual funds are demonstrating unwavering confidence in midcap and smallcap stocks. This blog sheds light on this intriguing trend, highlighting twelve such stocks that have witnessed a remarkable surge in mutual fund investments over the last six months.
Midcap and Smallcap Appeal Amid Highs
Despite the soaring equity market, mutual fund managers are strategically adding midcap and smallcap stocks to their portfolios. These stocks are associated with quality businesses and promising growth prospects. This demonstrates fund managers' confidence in companies boasting strong balance sheets and sustainable business models.
The Twelve Notable Stocks
Mangalore Refinery and Petrochemicals
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
1.7 crore |
|
Increase in Shares (Last 6 Months) |
2136% |
|
Active Schemes Holding |
12 |
|
New Additions in Last 6 Months |
11 |
The Karnataka Bank
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
1.1 crore |
|
Increase in Shares (Last 6 Months) |
777% |
|
Active Schemes Holding |
13 |
|
New Additions in Last 6 Months |
8 |
L&T Finance Holdings
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
1.5 crore |
|
Increase in Shares (Last 6 Months) |
685% |
|
Active Schemes Holding |
15 |
|
New Additions in Last 6 Months |
11 |
Star Health and Allied Insurance Company
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
1.7 crore |
|
Increase in Shares (Last 6 Months) |
568% |
|
Active Schemes Holding |
50 |
|
New Additions in Last 6 Months |
30 |
Suzlon Energy
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
12.6 crore |
|
Increase in Shares (Last 6 Months) |
544% |
|
Active Schemes Holding |
16 |
|
New Additions in Last 6 Months |
15 |
Ujjivan Financial Services
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
0.5 crore |
|
Increase in Shares (Last 6 Months) |
533% |
|
Active Schemes Holding |
19 |
|
New Additions in Last 6 Months |
17 |
IIFL Finance
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
1.3 crore |
|
Increase in Shares (Last 6 Months) |
437% |
|
Active Schemes Holding |
17 |
|
New Additions in Last 6 Months |
9 |
Indus Towers
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
1 crore |
|
Increase in Shares (Last 6 Months) |
429% |
|
Active Schemes Holding |
14 |
|
New Additions in Last 6 Months |
11 |
Orchid Pharma
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
0.5 crore |
|
Increase in Shares (Last 6 Months) |
396% |
|
Active Schemes Holding |
8 |
|
New Additions in Last 6 Months |
7 |
HDFC Asset Management Company
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
2.5 crore |
|
Increase in Shares (Last 6 Months) |
338% |
|
Active Schemes Holding |
68 |
|
New Additions in Last 6 Months |
34 |
PNB Housing Finance
|
M-CAP |
Small Cap |
|
Shares Held (July 2023) |
1.1 crore |
|
Increase in Shares (Last 6 Months) |
256% |
|
Active Schemes Holding |
19 |
|
New Additions in Last 6 Months |
14 |
Piramal Enterprises
|
M-CAP |
Mid Cap |
|
Shares Held (July 2023) |
1 crore |
|
Increase in Shares (Last 6 Months) |
227% |
|
Active Schemes Holding |
36 |
|
New Additions in Last 6 Months |
15 |
What Does This Trend Signify?
This surge in midcap and smallcap stock investments by mutual funds demonstrates fund managers' optimism in businesses displaying strong fundamentals and growth potential. These stocks have seen substantial increases in the number of shares held, often exceeding threefold.
Why Actively-Managed Schemes?
The data considered for this analysis focuses exclusively on actively-managed mutual fund schemes. This approach emphasizes the confidence of professional fund managers in selecting stocks with growth opportunities.
Conclusion
While the equity market may be hitting record highs, fund managers are not shying away from midcap and smallcap stocks. This trend reflects a strategic approach to investing, targeting quality businesses with robust growth potential. The chosen stocks have seen an impressive surge in mutual fund investments, indicating the attractiveness of these businesses to seasoned fund managers. Investors looking for value-added opportunities may find these trends worth considering for their investment portfolios.
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