MFs own larger slice of small and midcap stocks

Average MF ownership in Nifty Smallcap 250 stocks rose to 9% in Dec 2023 from 7.7% a yr ago

-  ABHISHEK KUMAR

Retail investors now own a larger share of smallcap companies than they did a year ago, thanks to their conviction in mutual fund (MF) schemes focused on this segment.

Data from Capitaline shows that MFS' average holding in the National Stock Exchange Nifty Smallcap 250 Index stood at 9 percent at the end of the October-December quarter of 2023-24 (FY24), up from 7.76 per cent in the same quarter of 2022-23.

During this period, the number of companies with over 20 per cent MF holdings rose from 20 to 26.

Market observers indicate that early trends suggest further increases in ownership during the January-March quarter of FY24.