Cautious of market highs: Here are the most sold small-cap stocks by MFs
Experts are cautions that markets are trading near all-time high levels, currently. Aggressive fund flows and positive sentiments have pushed the valuation above their fair value. Many small cap stocks look expensive and way ahead of their fundamentals
Small-caps have been the best-performing segment in Indian equity markets since the March 2020 lows triggered by COVID-19. For instance, returns of 51 percent of the stocks in the Nifty Smallcap 250 index more than doubled over the last three years ended August 11, 2023. Meanwhile, only about 45 percent of the stocks in the Nifty 100 index as well as Nifty Midcap 150 index delivered triple-digit returns and more during the period. But experts sound caution. Markets appear to be near their all-time high levels. Aggressive fund flows and positive sentiments, some say, have pushed the valuations to above their fair values. Ravi Kumar T V, Founder, Gaining Ground Investment Services, advises retail investors to avoid investing in small-caps if their timeline is short-term. Investors should note that the market gets affected by short-term noise, he says. What are mutual funds doing with their small-caps? Here are the most sold small-cap stocks by mutual funds in July. Fund managers exited as these stocks either got attained their target prices or turned unattractive due to weak prospects. Only actively managed equity schemes and hybrid schemes (except arbitrage funds) are considered for compilation. Data as of July 31, 2023. Source: ACEMF.
2/11
PVR Inox Number of schemes that exited the stock: 9 Total number of schemes that held the stock as on July 31, 2023: 57 Sample of schemes that exited the stock in July: Baroda BNP Paribas ELSS and ICICI Pru Midcap Fund
3/11
Delta Corp Number of schemes that exited the stock: 8 Total number of schemes that held the stock as on July 31, 2023: 10 Sample of schemes that exited the stock in July: Quant Value and ITI Small Cap Fund
4/11
Aether Industries Number of schemes that exited the stock: 5 Total number of schemes that held the stock as on July 31, 2023: 30 Sample of schemes that exited the stock in July: WOC Flexi Cap and WOC Mid Cap Fund
Aavas Financiers Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 39 Sample of schemes that exited the stock in July: Union Small Cap and ICICI Pru Banking & Fin Serv Fund
Archean Chemical Industries Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 15 Sample of schemes that exited the stock in July: LIC MF Small Cap and Quant Active Fund
7/11
Chambal Fertilisers and Chemicals Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 16 Sample of schemes that exited the stock in July: ICICI Pru Midcap and ICICI Pru Child Care Fund
Johnson Controls - Hitachi Air Conditioning India Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 6 Sample of schemes that exited the stock in July: Aditya Birla SL Small Cap and ITI Value Fund
UTI Asset Management Company Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 34 Sample of schemes that exited the stock in July: Bank of India Small Cap and ITI Multi-Cap Fund
VIP Industries Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 33 Sample of schemes that exited the stock in July: Sundaram Tax Savings and Baroda BNP Paribas Multi Cap Fund
11/11
VRL Logistics Number of schemes that exited the stock: 4 Total number of schemes that held the stock as on July 31, 2023: 27 Sample of schemes that exited the stock in July: Mahindra Manulife Small Cap and Quant Infrastructure Fund
