- Date : 26/10/2023
- Read: 4 mins
Find out the hidden gems identified by small-cap funds in September 2023. They include two stocks with interest from 3 top small-cap mutual funds.
Avid watchers of the mutual fund industry must have noticed that top small-cap funds have delivered enviable returns in recent years. No wonder, therefore, one-third of mutual fund equity inflow during the last year has been in small-cap funds.
Small-cap funds posted over 31% returns in one year, compared to 17% and 26% by large and mid-cap funds
RR Kabel and Jupiter Lifeline drew interest from at least three top small-cap funds
Both Sheela Foam and HLE Glascoat stocks got more than Rs 130 crore each from one scheme alone
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Emerging stocks in small-cap schemes
Here are some of the stocks that were added in large volume by multiple small-cap funds in September 2023 –
This cable and wire company generated keen interest from several top small-cap funds. The small-cap stock was added in large volume by Kotak Small Cap (Rs 114.6 crore) and DSP (Rs 169.8 crore). Franklin India invested Rs 16.1 crore, Union Small Cap added Rs 2.2 crore and Axis Small Cap also invested Rs 2.5 crore in this small-cap stock.
Gujarat State Petronet (GSP)
Franklin India Small Cap fund added GSP as 0.7% of its holding with a value of Rs 63.3 crore. This natural gas transmission company stock was one of only two stocks added by Sundaram Small Cap. It amounts to 1.2% of their holding with a market value of Rs 31.9 crore.
Sai Silk Kalamandir
Textile brand Sai Silk garnered interest from HSBC Small Cap and SBI Small Cap in September 2023. The newly listed share saw mutual fund interest of Rs 580 crore during the month. It is the only new addition made by a prominent small-cap scheme, the SBI Small Cap Fund. HSBC Small Cap added Rs 25.3 crore of this stock last month.
Jupiter Lifeline Hospitals
This medical stock was added by small-cap schemes of Nippon India, Axis, and Kotak. Nippon India bought Jupiter stocks with a market value of Rs 13.5 crore. Both Axis and Kotak added Rs 21.9 crore of the share each.
Apart from the above, there are a few more stocks that attracted large investments from specific fund schemes. This includes -
Quant Small Cap added SJVN (Rs 117.3 crore)
Nippon India added Sheela Foam (Rs 133.4 crore)
Kotak is banking on Bandhan Bank (Rs 100 crore)
DSP Small Cap bought HLE Glascoat (Rs 134.7 crore)
HDFC shopped Aditya Vision (Rs 124.2 crore)
After having a look at these newly bought small-cap stocks and larger equities, perhaps you can spot the next big thing in the stock market. If the top execs of the mutual fund industry find these stocks interesting, you better add them to your watchlist too!
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.