MFs pull back: Stakes cut in 12 smallcap stocks after two quarters of buying; stocks fall up to 40%

An analysis of mutual fund (MF) shareholding trends in BSE smallcap stocks over the last four quarters reveals a notable shift. During the June 2026 quarter, mutual funds trimmed their holdings in 83 stocks, marking a reversal after two consecutive quarters of accumulation i.e. from September 2025 to December 2025, and again from December 2025 to March 2026.
Of these stocks, 41 have delivered positive price returns in CY26 so far. In fact, 13 stocks have seen their share prices rise more than 50%, including two multibaggers. However, not all stocks have shared this upside. We identified 12 stocks from the group whose shares have declined by 20-40% during CY26, underlining the growing divergence in performance within the broader market.
Mutual funds are considered by informed investors who often base their investment decisions on in-depth research and long-term fundamentals. While mutual fund buying typically boosts investor confidence, a reduction in their stakes after a period of steady accumulation is worth paying attention to. (Data Source: ACE Equity)

MF holding slipped to 9.08% in June ’26 from 10.21% in March ’26.
Previous quarters: Sept ’25: 7.93% | Dec ’25: 9.64% | Mar ’26: 10.21%
CY26 performance: -41%

MF holding fell to 20.72% in June ’26 from 24.13% in March ’26.
Previous quarters: Sept ’25: 20.21% | Dec ’25: 23.00% | Mar ’26: 24.13%
CY26 performance: -36%

MF holding dropped to 2.86% in June ’26 from 3.67% in March ’26.
Previous quarters: Sept ’25: 2.90% | Dec ’25: 3.66% | Mar ’26: 3.67%
CY26 performance: -35%

MF holding eased to 17.78% in June ’26 from 18.60% in March ’26.
Previous quarters: Sept ’25: 14.13% | Dec ’25: 17.02% | Mar ’26: 18.60%
CY26 performance: -32%

MF holding edged down to 20.05% in June ’26 from 20.64% in March ’26.
Previous quarters: Sept ’25: 18.73% | Dec ’25: 19.29% | Mar ’26: 20.64%
CY26 performance: -31%

MF holding declined to 19.54% in June ’26 from 20.97% in March ’26.
Previous quarters: Sept ’25: 19.55% | Dec ’25: 20.60% | Mar ’26: 20.97%
CY26 performance: -29%

MF holding slipped to 0.32% in June ’26 from 0.38% in March ’26.
Previous quarters: Sept ’25: 0.29% | Dec ’25: 0.35% | Mar ’26: 0.38%
CY26 performance: -25%

MF holding fell to 31.79% in June ’26 from 33.29% in March ’26.
Previous quarters: Sept ’25: 31.65% | Dec ’25: 31.99% | Mar ’26: 33.29%
CY26 performance: -23%

MF holding eased to 6.65% in June ’26 from 7.00% in March ’26.
Previous quarters: Sept ’25: 6.41% | Dec ’25: 6.85% | Mar ’26: 7.00%
CY26 performance: -23%

MF holding dipped to 7.40% in June ’26 from 7.62% in March ’26.
Previous quarters: Sept ’25: 7.47% | Dec ’25: 7.51% | Mar ’26: 7.62%
CY26 performance: -23%

MF holding declined to 0.29% in June ’26 from 0.34% in March ’26.
Previous quarters: Sept ’25: 0.26% | Dec ’25: 0.30% | Mar ’26: 0.34%
CY26 performance: -22%

MF holding marginally slipped to 5.44% in June ’26 from 5.50% in March ’26.Previous quarters: Sept ’25: 3.86% | Dec ’25: 3.95% | Mar ’26: 5.50%CY26 performance: -21%

MF holding fell to 4.95% in June ’26 from 5.61% in March ’26.
Previous quarters: Sept ’25: 5.16% | Dec ’25: 5.44% | Mar ’26: 5.61%
CY26 performance: -20%

MF holding edged down to 1.15% in June ’26 from 1.18% in March ’26.Previous quarters: Sept ’25: 1.00% | Dec ’25: 1.14% | Mar ’26: 1.18%CY26 performance: -20%

MF holding dropped to 7.21% in June ’26 from 8.04% in March ’26.Previous quarters: Sept ’25: 5.09% | Dec ’25: 7.35% | Mar ’26: 8.04%CY26 performance: -20%
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