Mutual funds increased their investments in select mid-cap and small-cap companies during the March quarter (Q4FY24). This coincides with positive performance in these sectors, with the BSE Midcap and Small Cap indices gaining nearly 7% and 1.1% respectively, compared to the benchmark BSE Sensex which rose by 2%.

Top Increases in Mutual Fund Holdings:

Whirlpool of India: Mutual fund holdings jumped by 20 percentage points to 31.14% in Q4FY24, up from 11.12% in the previous quarter. Analysts at YES Securities are bullish on the company, citing growth in market share and distribution strength.

Aavas Financiers and Innova Captab: These companies also saw significant increases in mutual fund holdings, with stakes rising to 21.13% and 12.38% respectively, up from 12.05% and 3.40% in the prior quarter.

Other Notable Investments: Data showed that mutual funds also increased their holdings in several other mid- and small-cap companies during Q4FY24, including:

Shakti Pumps (India)

Tips Industries

Pricol

Aditya Birla Sun Life AMC

Hi-Tech Pipes

Avalon Technologies

Voltas (Analysts at Axis Capital are positive with a target price of Rs 1,360)

Kalyan Jewellers India

SpiceJet

CMS Info Systems

GR Infraprojects

Increased Stakes in Established Companies: Mutual funds also upped their investments in some larger companies. These include:

Jubilant FoodWorks: Stake increased to 19.98% from 15.41%.

Star Health and Allied Insurance Company

Swan Energy

Crompton Greaves Consumer Electricals (Analysts at Centrum Broking expect sales to double in 5-6 years)

Devyani International

Machhar Industries

This trend suggests that mutual funds see growth potential in both established and emerging companies across various sectors.