14 small-cap MF favorites plunge up to 47% in 3 months
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- Newgen Software Technologies led the slide with a 47% decline (Rs 844 to Rs 443) in 2026, while mutual fund holdings in the stock rose from 3.67% in June 2025 to 4.12% by December 2025.
- Awfis Space Solutions fell 45% (Rs 493 to Rs 273), with MF holdings climbing from 29.51% to 35.98% over the same window — one of the most heavily owned names on the list.
- Across roughly 235 small-cap stocks, mutual funds raised their stakes through both the September and December 2025 quarters, per ACE Equity data.
- Blue Jet Healthcare saw MF holdings quadruple from 0.50% to 2.01% between June and December 2025, yet the stock dropped 32% in early 2026.
- SH Kelkar and Company had its MF holding nearly double from 2.88% to 5.56% in the same period, even as the stock fell 33%.
- Syngene International lost 39% (Rs 651 to Rs 400) despite MF holdings rising to 22.71% by December 2025, the highest ownership concentration among the 14 names.
- The data frames a "bottom fishing" dilemma: whether the sharp corrections mark attractive entry points for retail investors or signal further downside in a segment where even professional fund managers were adding exposure through year-end 2025.
Why it matters: Mutual funds — typically seen as research-backed, long-term conviction buyers — were actively adding to 14 small-cap names right up to a 30–47% crash, with MF holdings rising at every quarterly snapshot from June through December 2025. That fund managers kept buying means retail investors who followed their lead into 2026 absorbed identical losses, turning 'smart money' conviction into a potential contrarian warning sign for the broader small-cap segment.
