An analysis of mutual fund (MF) shareholding trends in BSE smallcap stocks over the last four quarters reveals a notable shift. In the December 2025 quarter, mutual funds trimmed their holdings in 67 stocks, marking a reversal after two consecutive quarters of accumulation—from March 2025 to June 2025 and from June 2025 to September 2025.
Nearly half of the stocks on the list—around 32—have delivered negative price returns so far in FY26. In fact, 11 of them have seen their share prices fall by 30–60% during the fiscal year. At the same time, it is important to note that some stocks have recorded substantial gains, rising between 50% and 140%. However, this analysis focuses specifically on the major losers. Mutual funds are considered informed investors, often basing their decisions on in-depth research and long-term fundamentals. While mutual fund buying typically boosts investor confidence, a reduction in their stakes after a period of steady accumulation is worth paying attention to. (Data Source: ACE Equity)