MFs slashed stakes in 12 smallcaps in Q4; stocks shed up to 55%

March-quarter shareholding disclosures have begun, and so far, around 130 companies have released data showing a notable shift in mutual fund positioning. Mutual funds trimmed stakes in nearly 45 smallcap stocks during the March 2026 quarter compared with December 2025, signalling a cautious stance toward the segment.What stands out is the performance backdrop: 23 of these stocks have already fallen more than 10% over the past six months. Narrowing it further, 12 smallcap names have seen sharper declines of 25-55% over the same period. (Data source: ACE Equity)Taking StockMarch-quarter shareholding disclosures have begun, and so far, around 130 companies have released data showing a notable shift in mutual fund positioning. Mutual funds trimmed stakes in nearly 45 smallcap stocks during the March 2026 quarter compared with December 2025, signalling a cautious stance toward the segment.What stands out is the performance backdrop: 23 of these stocks have already fallen more than 10% over the past six months. Narrowing it further, 12 smallcap names have seen sharper declines of 25-55% over the same period. (Data source: ACE Equity) Taking Stock