An analysis of mutual fund (MF) shareholding trends in BSE small-cap stocks over the last four quarters reveals a notable shift. During the September 2025 quarter, mutual funds trimmed their holdings in 79 stocks, marking a reversal after two consecutive quarters of accumulation — from December 2024 to March 2025, and again from March 2025 to June 2025.
About 48 stocks from the list have delivered positive price returns in FY26 so far. In fact, eight stocks have seen their share prices rise more than 50%, with some gaining as much as 95% in FY26. However, it is equally important to note that not all stocks have shared this upside. We highlighted 10 stocks from the group that have declined by as much as 32% during FY26, underlining the growing divergence in performance within the broader market.
Mutual funds are considered informed investors, often basing their decisions on in-depth research and long-term fundamentals. Mutual fund buying typically boosts investor confidence, but if they reduce their stakes after a period of steady accumulation, it’s worth paying attention. (Data Source: ACE Equity)