6 Mutual Funds Completely Exit 12 Smallcap Stocks in March 2026

In March, 6 mutual fund companies executed a complete sell-off of 12 smallcap stocks. This move was part of an ongoing strategy to actively manage their investment portfolios, as per Nuvama Institutional Equities report. 

Details of the Mutual Fund Exits 

Among the funds, HDFC Mutual Fund divested from 3 smallcap stocks, namely Elecon Engineering Company, TCPL Packaging, and TD Power Systems.  

Similarly, SBI Mutual Fund also exited 3 stocks, including Angel One, Indian Energy Exchange, and Cohance Lifesciences. 

Kotak Mutual Fund made a complete exit from a single smallcap stock, Indraprastha Gas, while Axis Mutual Fund retreated entirely from TTK Prestige. 

Nippon India and ICICI Prudential Mutual Fund's Moves 

Nippon India Mutual Fund sold off its holdings in three smallcap companies: Honeywell Auto, Indiamart Intermesh, and Sudeep Pharma.  

Meanwhile, ICICI Prudential Mutual Fund divested from Aditya AMC, shaking up its portfolio by removing this particular smallcap stake. 

Context and Implications 

Tactical exits like these are often a reflection of asset management companies’ efforts to optimise portfolio performance and address market dynamics. By adjusting their stock holdings, they aim to reflect their analysis and investment strategies. 

Read More: Rail PSU Orders Surge: RailTel Corporation of India, RVNL and Others Win Contracts Worth More than ₹1,400 Crore! 

Conclusion 

March saw significant activity in the mutual fund sector with a full withdrawal from stocks by various asset management companies. These decisions underscore the dynamic nature of portfolio management in pursuit of strategic objectives. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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 are subject to market risks, read all scheme-related documents carefully.