Smallcap pie grows as retail investor faith soars, shows Capitaline data

Mutual funds' average holding in Smallcap 250 Index companies peaks at 9.26%

Retail investors now own a bigger slice of smallcap companies than at the start of 2023–24 (FY24), underscoring their growing conviction about investing in this red-hot space.

Data from Capitaline shows mutual funds’ (MFs’) average holding in the National Stock Exchange Nifty Smallcap 250 rising to 9.26 per cent from 8.67 per cent during the first six months of FY24, with the number of companies with over 20 per cent MF holdings increasing from 24 to 28.

In comparison, MF holdings in Nifty50 companies have gone up only marginally, from 9.67 per cent to 9.75 per cent.

This year’s rise