Retirement solution oriented mutual funds schemes mainly look for relatively less risky, quality stocks from large and midcap space. Despite their conservative nature, many of them prefer few holdings from micro-cap universe that could turn multibaggers over long run.
Micro-cap stocks can turn multibaggers if fund managers choose them wisely. But sometimes, stock picks don’t go according to plan. These micro-cap stocks were shunned by mutual funds in the last 3 months
Motilal Oswal Nifty Microcap 250 Index Fund NFO has opened up for subscriptions. However, active funds in the small and microcap space have been chasing micro-cap stocks as well. But such stocks are illiquid and volatile. Here are the most popular microcap stocks among active MFs, PMSes & AIFs
Despite illiquidity that plagues tiny companies on stock exchanges, especially micro-cap stocks, fund managers often go fishing at the bottom of the barrel. It’s a risky strategy, but if the picks work, they can become multibaggers