PFC and MCX are the most owned mid and small cap stocks by mutual funds

However, unlike other public sector undertakings (PSUs), the Power Finance Corporation has a higher number of shares available in the market for trade. As per the latest shareholding data, the government holds 56% in the company, whereas the remaining 44% is held with the public. Interestingly, more than a fourth of public holding, i.e. 11.64% of PFC is held with mutual funds.

When it comes to the smaller stocks, Multi Commodity Exchange of India (MCX) bags the numero uno position. The country’s fund houses held ₹5600 crore worth of shares in the commodity exchange at the end of January, show data sourced from primemfdatabase.com. Other small caps with similar exposure from the fund houses include Blue Star, Kalpataru Projects International, Brigade Enterprises, and Cholamandalam Financial Holdings.

While shares of MCX have more than doubled over the last six months, the stock of Blue Star, Kalpataru Projects International, and Brigade Enterprises have returned anywhere between 46% to 72% during the same period. In comparison, the benchmark Nifty50 has gained 14% over the last six months.

In fact, the gauge of small stocks --Nifty SmallCap – has outdone other indices with a handsome gain of 33% over the last six months. That compares with the 25% returns yielded by Nifty Midcap during the same period.

Small-cap stocks are those that command a market capitalisation of less than ₹5,000 crore, while mid-cap stocks are defined as those with market values of between ₹5,000 crore and ₹20,000 crore. These two categories are generally less liquid compared to their large-cap peers. On average, promoters own 55% of the Nifty Small cap index against 40% in the broader market.

The mutual fund industry recorded a net equity inflow of ₹21,780.56 crore in January, the highest since March 2022.