Mutual Funds to bid on smallcap stocks to gain 40 percent return

As per Ace Mutual Fund data, atleast eight small-cap stocks, which have given more than 40 percent returns since November, saw an increase in mutual fund holding. These eight smallcap stars are Bharat Dynamics, Multi Commodity Exchange, Prestige Estates Projects, Texmaco Rail & Engineering, NLC India, CESC, Carysil, and Sobha.

Canara Robeco Small Cap Fund was the highest buyer, purchasing 0.36 percent equity in the last month. Shares of the state-owned major gave 43 percent since November and scaled a lifetime high on Monday. On a year-to-date basis, the stock has given 62 percent returns to investors.

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The number of MF schemes holding shares of the commodity bourse increased by 8 to 88 as of November. Bajaj Finserv Flexi Cap Fund was the highest buyer of MCX shares last month, as the fund bought 0.2 percent equity, according to Trendlyne.

Shares of MCX have given 40 percent returns to investors since November, but on a year-on-date basis, the stock turned multibagger, giving returns of 108 percent.

Invesco India Mid Cap Fund was the highest buyer of 618,819 shares in November, constituting 0.2 percent equity. Shares of the Prestige estates [real estate] developer have given 45 percent returns since November, while on a year-to-date basis, the stock has rallied 146 percent and scaled a lifetime high last week.

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Rail-related stocks saw a bull run in 2023, aided by government's increased spending towards infrastructure. The number of MF schemes holding the stock rose to 6 in November from 2 in October. MFs held 2.41 crore shares of the company as of November, compared to 1.94 crore shares a month ago.

NLC India was also among the PSU stocks that saw rising institutional interest. The number of MF schemes holding the stock was 44 in November, compared to 41 in October.

SBI Multi Asset Allocation Fund was the highest buyer of 20,00,000 shares last month, constituting 0.2 equity. Since November, the mining major has rallied 54 percent, and on a YTD basis, the stock has given a whopping 135 percent returns to investors.

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