5 Smallcap Stocks Common Across India’s Three Largest Mutual Funds

India’s top smallcap fund managers are showing unexpected consensus, converging on a select group of five stocks despite the inherent volatility of the segment. As institutional investors navigate market corrections, these specific names have become the bedrock of portfolios managing over ₹1.51 lakh crore.

The ₹1.5 Lakh Crore Consensus

Data from ACE MF reveals a striking pattern among the three giants of the smallcap category: Nippon India Small Cap Fund (₹74,600 crore), HDFC Small Cap Fund (₹38,800 crore), and SBI Small Cap Fund (₹37,400 crore). Together, these schemes have collectively parked approximately ₹8,000 crore—representing 5.34% of their pooled assets—into just five specific stocks.

While the concentration varies, the conviction is highest at SBI Small Cap, which has nearly 10% of its entire portfolio riding on these five names. In contrast, Nippon India Small Cap maintains a more conservative exposure of 2.49%, and HDFC Small Cap stands at 6.64%.

Breaking Down the Top Five Picks

The common holdings reveal a preference for diversified sectors, ranging from healthcare to infrastructure and banking.

Market Sentiment: Growth vs. Valuation

The decision to double down on these stocks comes amid a shift in fund manager sentiment. Following a period of market correction, many managers are turning more constructive on the small and mid-cap (SMID) space. 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%.

ಆದಾಗ್ಯೂ, ಎಚ್ಚರಿಕೆ ಅಗತ್ಯವಿದೆ. CY26ರಲ್ಲಿ Nifty Smallcap 100 ಸೂಚ್ಯಂಕವು 4.3% ಲಾಭ ಗಳಿಸಿದ್ದರೂ, ಕೆಲವು ವಿಶ್ಲೇಷಕರು ಹೆಚ್ಚಿನ ಮೌಲ್ಯಮಾಪನದ (high valuations) ಬಗ್ಗೆ ಎಚ್ಚರಿಸುತ್ತಿದ್ದಾರೆ. Nifty 50 ಸೂಚ್ಯಂಕವು FY27 ಅಂದಾಜು P/E ಅನುಪಾತದಲ್ಲಿ 18.8x ಎಂಬ ಸಮಂಜಸವಾದ ಮಟ್ಟದಲ್ಲಿ ವ್ಯಾಪಾರವಾಗುತ್ತಿರುವಾಗ, Nifty Midcap 100 ಮತ್ತು Nifty Smallcap 100 ಕ್ರಮವಾಗಿ 26.8x ಮತ್ತು 24.5x ಎಂಬ ಹೆಚ್ಚಿನ ಮಲ್ಟಿಪಲ್ಸ್‌ನಲ್ಲಿ ವ್ಯಾಪಾರವಾಗುತ್ತಿವೆ ಎಂದು JM Financial ಗಮನಿಸಿದೆ.

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