Top five small-cap stocks witnessing heavy betting from mutual funds

There is no better place to hunt for the top small-cap stock ideas than the mutual fund portfolio holdings. Continue reading to learn about the top small-cap stocks held by mutual funds.

Following a fast decline from 17,943 levels, Nifty 50 appears to have reached a low of 17,011.35. However, the 17,300 level remains a barrier to further price rise. Despite poor global signals, domestic indices opened in the green.

Wall Street's major indices concluded the session in the negative on Monday, as investors continue disregarding the US Fed's ultra-hawkish approach. In overnight trading, Nasdaq Composite declined 0.6 per cent, Dow Jones tanked 1.11 per cent, and S&P 500 dropped 1.03 per cent.

Nonetheless, Asian counterparts opened higher, ignoring bearish global signs. Domestic indices also followed suit. Nifty 50 was trading at 16,970.8 at the time of writing, down by 42.5 points (0.31 per cent). Broader market indices fared in a mixed manner. Nifty Mid-Cap 100 index moved in line with frontline indices, declined 0.67 per cent, while Nifty Small-Cap 100 index lost 0.29 per cent.

The small-cap niche needs extensive investigation. However, these are the ones that pay out more than large-cap and mid-cap. Said that, mutual fund portfolio holdings are the most incredible spot to begin your hunt for small-cap ideas.

In this article, we have compiled a list of the top five small-cap stocks in which mutual funds have a larger stake. Mutual funds invested around Rs 5,285 crore in small-cap stocks in August 2022.