5 Under-the-Radar Stocks Held by India's Top Smallcap Mutual Funds

India’s largest smallcap mutual funds are showing a rare consensus, converging on a select group of five stocks despite varying investment strategies. As market volatility persists, these high-conviction picks suggest a strategic shift among fund managers toward specific growth drivers in the small-cap segment.

The Power of Convergence: Rs 8,000 Crore Shared Bet

Data from ACE MF reveals a striking trend across three of India’s most significant smallcap schemes: Nippon India Small Cap Fund (Rs 74,600 crore AUM), HDFC Small Cap Fund (Rs 38,800 crore AUM), and SBI Small Cap Fund (Rs 37,400 crore AUM). Together, these funds manage a massive Rs 1.51 lakh crore.

Interestingly, these three giants have collectively parked approximately Rs 8,000 crore—about 5.34% of their pooled assets—into just five specific companies. While Nippon India maintains a modest 2.49% exposure to this group, SBI Small Cap shows the highest conviction, with nearly 10% of its entire portfolio riding on these five names.

Analyzing the Top 5 Common Holdings

The shared portfolio is comprised of diverse players across healthcare, infrastructure, banking, and entertainment. Here is how the capital is distributed:

Market Sentiment: Growth vs. Valuation Concerns

The move toward these stocks comes as fund managers turn more constructive following a period of correction. George Heber Joseph, CIO and CEO–Equity at ASK Investment Managers, noted that mid-caps recently delivered 36% YoY profit growth, significantly outperforming large-caps at 10%.

しかし、その楽観論に対しては、バリュエーションに関する慎重な見方も示されています。今年のカレンダーイヤーにおいて、Nifty Smallcap 100はNifty 50を上回るパフォーマンスを見せていますが、JM Financialは、小型株指数が過去の平均値から1標準偏差またはそれ以上高い水準で取引されていると警告しています。2027年度の予想P/Eベースでは、Nifty Smallcap 100は24.5倍となっており、18.8倍で取引されているNifty 50よりも割高な水準にあります。

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