Beyond Nifty 500 | Small-caps, micro-caps that make it to the hotlist of active fund managers
Shares of companies ranked below 500 are mostly under-researched and smallcap and microcap stocks. The lack of liquidity is more than made up by exceptional returns if the fund manager can correctly identify potential winners. Here are the most favourite holdings among active mutual fund managers
Most fund managers pick stocks among the largest 500 companies. More so, in 2018, the capital market regulator, Securities and Exchange Board of India, standardised the definition of what constitutes a largecap, a midcap and a smallcap stock. Although fund managers limit their stock picking to the top 500 companies due to liquidity comfort, they occasionally venture beyond the boundary in their hunt for multibagger stocks. As per the ACEMF data, only 4% or Rs 69,298 crore of the active equity AUM has been invested stocks beyond the Nifty 500 league as of December 2022. These are mainly smallcap and microcap stocks and, mostly under researched. Fund managers apply various parameters to choose the stocks that have the potential to outperform over the long term. Here are most popular stocks beyond Nifty 500 among the actively managed equity oriented mutual fund schemes (541 schemes except arbitrage funds). Data as of December 2022. Source: ACEMF and Niftyindices.com.
2/20
Global Health Latest M-CAP (Full): Rs 11,922 crore (Recently listed) Number of active funds that held the stock: 40 Sample of funds that held the stock: SBI Healthcare Opp, Motilal Oswal Large & Midcap and PGIM India Small Cap Fund
3/20
Rolex Rings Latest M-CAP (Full): Rs 4,738 crore Number of active funds that held the stock: 38 Sample of funds that held the stock: ICICI Pru Smallcap, Invesco India Infrastructure and Kotak Infra & Eco Reform
4/20
Bikaji Foods International Latest M-CAP (Full): Rs 10,623 crore (Recently listed) Number of active funds that held the stock: 35 Sample of funds that held the stock: Quant Focused, Quant ESG Equity and Tata India Consumer
5/20
NMDC Latest M-CAP (Full): Rs 36,471 crore Number of active funds that held the stock: 34 Sample of funds that held the stock: ICICI Pru Commodities, DSP Natural Res & New Energy and Aditya Birla SL Dividend Yield
6/20
DCB Bank Latest M-CAP (Full): Rs 3,848 crore Number of active funds that held the stock: 33 Sample of funds that held the stock: Tata Small Cap, Taurus Banking & Fin Serv and LIC MF Banking & Financial Services
7/20
Craftsman Automation Latest M-CAP (Full): Rs 6,943 crore Number of active funds that held the stock: 31 Sample of funds that held the stock: Invesco India Smallcap, Aditya Birla SL Multi-Cap and LIC MF Tax Plan
8/20
Equitas Holdings Latest M-CAP (Full): Rs 4,281 crore Number of active funds that held the stock: 30 Sample of funds that held the stock: SBI Multi Asset Allocation, Franklin India Smaller Cos and Invesco India Financial Services
9/20
VRL Logistics Latest M-CAP (Full): Rs 4,885 crore Number of active funds that held the stock: 29 Sample of funds that held the stock: Quant Infrastructure, IDFC Transportation and Logistics and HSBC Infrastructure
10/20
KFin Technologies Latest M-CAP (Full): Rs 5,663 crore (Recently listed) Number of active funds that held the stock: 27 Sample of funds that held the stock: Motilal Oswal Equity Hybrid, Sundaram Equity Savings and Nippon India Banking & Financial Services
11/20
NMDC Steel Latest M-CAP (Full): NA (Yet to be listed) Number of active funds that held the stock: 27 Sample of funds that held the stock: DSP Natural Res & New Energy, ICICI Pru Commodities and Aditya Birla SL Dividend Yield
12/20
BEML Land Assets Latest M-CAP (Full): NA (Yet to be listed) Number of active funds that held the stock: 26 Sample of funds that held the stock: IDBI Dividend Yield, Sundaram Focused and Aditya Birla SL Small Cap
13/20
Gateway Distriparks Latest M-CAP (Full): Rs 3,317 crore Number of active funds that held the stock: 26 Sample of funds that held the stock: ICICI Pru Smallcap, Franklin Build India and IDFC Transportation and Logistics
14/20
Kirloskar Oil Engines Latest M-CAP (Full): Rs 4,544 crore Number of active funds that held the stock: 26 Sample of funds that held the stock: Franklin India Opportunities, Franklin Build India and Mahindra Manulife Multi Cap Badhat Yojana
15/20
Archean Chemical Industries Latest M-CAP (Full): Rs 7,667 crore (Recently listed) Number of active funds that held the stock: 25 Sample of funds that held the stock: SBI Magnum Comma, Quant Small Cap and Motilal Oswal Multi Asset
16/20
Prudent Corporate Advisory Services Latest M-CAP (Full): Rs 4,112 crore Number of active funds that held the stock: 25 Sample of funds that held the stock: HSBC Tax Saver Equity, UTI Banking and Financial Services and Sundaram Small Cap
17/20
Aarti Pharmalabs Latest M-CAP (Full): NA (Yet to be listed) Number of active funds that held the stock: 24 Sample of funds that held the stock: Aditya Birla SL Midcap, IDBI Midcap and HDFC Mid-Cap Opportunities
18/20
Kaynes Technology India Latest M-CAP (Full): Rs 4,561 crore (Recently listed) Number of active funds that held the stock: 24 Sample of funds that held the stock: Nippon India Power & Infra, WOC Mid Cap and Mahindra Manulife Mid Cap Unnati Yojana
19/20
Greenply Industries Latest M-CAP (Full): Rs 1,741 crore Number of active funds that held the stock: 23 Sample of funds that held the stock: Tata Small Cap, IDFC Multi Cap and Tata Young Citizen Fund
20/20
Harsha Engineers International Latest M-CAP (Full): Rs 3,598 crore Number of active funds that held the stock: 23 Sample of funds that held the stock: SBI Multi Asset Allocation, WOC Mid Cap and Bank of India Small Cap
