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Smallcap MFs looking to distance from stocks beyond top 1,000

Business Standard

|

January 19, 2026

Their exposure just 2% of scheme corpus, finds study

- SAMIE MODAK

Smallcap mutual funds (MFs) in India continue to maintain limited exposure to microcap stocks, with allocations beyond the 1,000th rank by market capitalisation (mcap) capped at around 2 per cent, according to a study by domestic brokerage Ventura.

The study highlights that small-cap funds provide access to several niche sectors that are largely absent from the large and midcap universe.

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