Significant Declines in Smallcap Stocks: 14 Mutual Fund Favorites Drop Up to 50%
MF Favourites take a hit: 14 smallcap stocks slide up to 50% in 3 months
The Economic Times
Image: The Economic Times
In the first quarter of 2026, 14 smallcap stocks favored by mutual funds have experienced declines of up to 50%. This downturn raises questions about whether these stocks present buying opportunities or if further declines are imminent. Investors are advised to assess the situation carefully.
- 0114 smallcap stocks favored by mutual funds have dropped between 30% and 50% in early 2026.
- 02Newgen Software Technologies saw the largest decline of 47%, falling from ₹844 to ₹443.
- 03Other notable declines include Awfis Space Solutions (45%) and Cohance Lifesciences (43%).
- 04Despite these drops, mutual funds have increased their holdings in these stocks over the past two quarters.
- 05Investors are left questioning whether to buy these stocks at lower prices or wait for potential further declines.
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In early 2026, 14 smallcap stocks that were previously favorites among mutual funds have faced significant declines, with drops ranging from 30% to 50%. Notably, Newgen Software Technologies has seen a 47% decrease, plummeting from ₹844 to ₹443. Other stocks, such as Awfis Space Solutions and Cohance Lifesciences, have also experienced substantial declines of 45% and 43%, respectively. Despite these downturns, mutual funds have increased their holdings in these stocks over the last two quarters, indicating continued confidence. This situation raises critical questions for investors: Are these stocks now attractive for 'bottom fishing,' or is it wiser to wait for further declines? Only time will tell as the market continues to evolve.
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The significant declines in these smallcap stocks may affect investor confidence and could lead to a reevaluation of investment strategies in the smallcap segment.
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