10 smallcap stocks that multi-asset allocation MFs love to hold
Besides debt, commodities, and REITs & InvITs, multi-asset allocation mutual funds mainly invest in equities of different market capitalisation categories. Their allocation towards smallcap stocks has helped them deliver better returns
Multi-asset allocation funds (MAAFs), a hybrid mutual fund category, have been delivering better returns on the back of allocation towards equity as well as gold asset classes. MAAFs allocate their corpus across equity, debt, commodities (ETFs of gold and silver) and units of real estate investment trusts (REIT) and infrastructure investment trusts (InvIT). Aggressive hybrid funds invest 65-80 percent in equities and the rest in debt, while balanced advantage funds can change their debt-equity mix according to the prevailing market conditions. Schemes within the MAAF category had equity allocation of between 37 percent and and 71 percent (as of July) and invested across market capitalisation. As a category, they held about 46 percent, 11 percent and 6 percent of the overall assets in large, mid and smallcap stocks, respectively. Their allocation towards mid and smallcaps helped to spice up the returns. Here are the top smallcap stocks held by these funds. The portfolio data is as of July 31. Source: ACEMF.
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RBL Bank Sector: Banks Number of MAFs holding the stock: 5
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Zensar Technologies Sector: IT - Software No. of MAFs holding the stock: 4
