Mutual Funds Reduce Holdings in 13 Midcap Stocks Following 2 Quarters of Buying

In a notable shift, mutual funds have reduced their stakes in 13 midcap stocks during the March 2026 quarter, following 2 quarters of accumulation.  

This change comes as most of these stocks have delivered negative returns in CY26. 

Mutual Fund Shareholding Trends 

An analysis of mutual fund shareholding trends in BSE midcap stocks over the last 4 quarters reveals a significant change as per ACE Equity data.  

During the March 2026 quarter, mutual funds trimmed their holdings in 23 stocks, reversing a trend of accumulation seen from June to December 2025.  

The majority of these stocks have experienced negative price returns in CY26, with 13 midcap stocks witnessing a decline of over 10% in their share prices. 

Stocks with Reduced Mutual Fund Holdings 

The stocks where mutual funds have reduced their holdings,  

Midcap Stocks with Maximum Mutual Fund Selling (Over 20% Decline) 

Procter & Gamble Hygiene and Health Care experienced a decrease in mutual fund holdings from 8.81% in December 2025 to 8.65% by March 2026, alongside a stock performance decline of 29% in the year. 

Kalyan Jewellers India saw mutual funds lowering their stake from 14.54% in December 2025 to 13.63% by March 2026, with its stock falling by 27% during the same period. 

Escorts Kubota experienced a decrease in mutual fund holdings from 10.24% in December 2025 to 9.82% by March 2026, alongside a stock performance decline of 25% in the year. 

Patanjali Foods saw mutual funds lowering their stake from 3.32% in December 2025 to 2.25% by March 2026, with its stock falling by 23% during the same period. 

AWL Agri Business experienced a decrease in mutual fund holdings from 9.01% in December 2025 to 8.17% by March 2026, alongside a stock performance decline of 22% in the year. 

Ashok Leyland saw mutual funds lowering their stake from 8.32% in December 2025 to 7.92% by March 2026, with its stock falling by 21% during the same period. 

Midcap Stocks with Moderate Mutual Fund Exposure Cuts (15% to 20% Decline) 

Godrej Properties experienced a decrease in mutual fund holdings from 7.38% in December 2025 to 5.45% by March 2026, alongside a stock performance decline of 18% in the year. 

L&T Finance saw mutual funds lowering their stake from 11.86% in December 2025 to 11.54% by March 2026, with its stock falling by 17% during the same period. 

PI Industries experienced a decrease in mutual fund holdings from 22.00% in December 2025 to 21.81% by March 2026, alongside a stock performance decline of 17% in the year. 

Indraprastha Gas saw mutual funds lowering their stake from 10.71% in December 2025 to 9.46% by March 2026, with its stock falling by 16% during the same period. 

Midcap Stocks with Marginal Mutual Fund Stake Adjustments (10% to 14% Decline) 

Clean Science and Technology experienced a decrease in mutual fund holdings from 13.53% in December 2025 to 12.49% by March 2026, alongside a stock performance decline of 12% in the year. 

Housing & Urban Development Corporation saw mutual funds lowering their stake from 3.00% in December 2025 to 2.51% by March 2026, with its stock falling by 10% during the same period. 

3M India experienced a decrease in mutual fund holdings from 7.40% in December 2025 to 7.38% by March 2026, alongside a stock performance decline of 10% in the year. 

Read More: Best Small Cap Mutual Funds for June 2026: Bandhan, Quant, Invesco and More Lead Based on 5-Year CAGR! 

Conclusion 

The reduction in mutual fund holdings in these 13 midcap stocks after two quarters of accumulation highlights a shift in investment strategy. With most of these stocks showing negative returns in CY26, the changes in mutual fund stakes are noteworthy for investors. 

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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.