Top 5 Smallcap Stocks That Attracted Mutual Fund Managers in March

According to data released by the Association of Mutual Funds in India (AMFI), equity mutual fund net inflows declined 14% in March 2025 to ₹25,082.01 crore. This was primarily driven by reduced participation in sectoral and thematic funds.

However, the small cap segment stood resilient amid the broader moderation in investor activity, indicating sustained institutional interest in emerging companies.

Small Cap Fund Inflows Rise 10% in March

Net investments in small cap mutual funds increased by 10% to ₹4,092.12 crore in March, showcasing the confidence mutual fund managers continue to place in this segment. While mid cap fund inflows saw a marginal increase of 0.9% to ₹3,438.87 crore, large cap funds saw a significant dip of 13.5%, pulling in only ₹2,479.31 crore.

Which Smallcap Stocks Attracted the Most Buying?

The shift in investor preference towards small caps was reflected in the stock-level activity by mutual funds. The top 5 small-cap stocks that saw the highest net buying by mutual funds in March 2025 span across diverse sectors—travel, healthcare, consumer durables, and financial services.

These stocks gained traction across various sectors, with travel and healthcare companies leading the pack. 

Conclusion

Despite a 14% dip in overall equity mutual fund inflows, the rise in small-cap and mid-cap fund allocations suggests a shift in investor outlook towards niche and high-growth segments. 

The pattern of stock selection by mutual funds in March offers insight into current institutional preferences, but it is essential to understand that these trends are based on past performance and market dynamics that may evolve over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.