MF favourites: 12 smallcap stocks surge up to 240% in CY26; 3 turn multibaggers

In CY26 so far, several smallcap stocks have delivered strong returns, but picking winners in this space is far from easy given their inherent volatility. One useful lens often tracked by investors is mutual fund (MF) ownership. The idea is simple: mutual funds deploy capital only after deep research and high conviction, so rising institutional participation can serve as a useful signal of potential quality and momentum. When multiple MF schemes cluster around the same stock, it often strengthens market confidence and attracts further retail interest.

As of May 2026, data shows that 202 small-cap stocks were held by more than 50 mutual fund schemes, indicating widespread institutional engagement across the segment. According to ETMarkets analysis, 48 of these stocks have already gained over 25% since the start of CY26. Even more striking, 12 stocks have surged between 70% and 240% in less than six months, including three multibaggers, highlighting how powerful momentum can build when institutional support aligns with market trends.

Among the most widely held names, the Multi Commodity Exchange of India stands out, with 347 mutual fund schemes holding the stock, which has risen around 30% in CY26 so far. Radico Khaitan and RBL Bank are also prominently owned, held by 209 and 202 MF schemes respectively, and have delivered gains in the 15–20% range during the year. (Data source: ACE MF, ACE Equity)

In CY26, the stock surged 243%, climbing from Rs 2,421 to Rs 8,301. As of May 2026, it was present in 67 mutual fund schemes, with total equity mutual fund exposure of Rs 5,198 crore.

In CY26, the stock gained 209%, rising from Rs 68 to Rs 210. As of May 2026, it was held across 56 mutual fund schemes, with combined equity mutual fund holdings of Rs 2,051 crore.

In CY26, the stock advanced 144%, moving up from Rs 1,489 to Rs 3,626. As of May 2026, it featured in 89 mutual fund schemes, with total equity mutual fund investments of Rs 4,309 crore.

In CY26, the stock rose 96%, increasing from Rs 1,218 to Rs 2,391. As of May 2026, it was part of 131 mutual fund schemes, with cumulative equity mutual fund holdings of Rs 6,784 crore.

In CY26, the stock jumped 93%, moving from Rs 8,368 to Rs 16,154. As of May 2026, it was held in 139 mutual fund schemes, with total equity mutual fund exposure of Rs 11,574 crore.

In CY26, the stock gained 93%, rising from Rs 722 to Rs 1,394. As of May 2026, it was present in 76 mutual fund schemes, with total holdings worth Rs 1,067 crore.

In CY26, the stock advanced 91%, climbing from Rs 1,703 to Rs 3,248. As of May 2026, it was held across 120 mutual fund schemes, with total equity mutual fund holdings of Rs 3,627 crore.

In CY26, the stock rallied 89%, increasing from Rs 702 to Rs 1,326. As of May 2026, it featured in 83 mutual fund schemes, with total equity mutual fund exposure of Rs 4,246 crore.

In CY26, the stock climbed 85%, rising from Rs 2,624 to Rs 4,862. As of May 2026, it was held across 93 mutual fund schemes, with total equity mutual fund holdings of Rs 2,131 crore.

In CY26, the stock gained 82%, moving from Rs 733 to Rs 1,335. As of May 2026, it was present in 90 mutual fund schemes, with total holdings worth Rs 1,990 crore.

In CY26, the stock rose 78%, increasing from Rs 1,677 to Rs 2,992. As of May 2026, it was part of 54 mutual fund schemes, with total equity mutual fund exposure of Rs 4,231 crore.

In CY26, the stock advanced 73%, moving from Rs 813 to Rs 1,404. As of May 2026, it was held across 94 mutual fund schemes, with total equity mutual fund holdings of Rs 3,389 crore.

In CY26, the stock climbed 70%, rising from Rs 192 to Rs 326. As of May 2026, it was present in 65 mutual fund schemes, with combined equity mutual fund investments of Rs 1,432 crore.

In CY26, the stock gained 64%, increasing from Rs 3,111 to Rs 5,112. As of May 2026, it featured in 66 mutual fund schemes, with total equity mutual fund holdings of Rs 1,415 crore.