Investors often track mutual fund moves as a signal of deep, research-backed conviction. Yet in today’s uncertain market, even many of these carefully chosen bets have taken a hit, with sharp corrections in share prices. This raises a key question: are these stocks now attractive “bottom fishing” opportunities, or is it wiser to wait for further declines? Only time will reveal the right call.A closer look at the small-cap segment shows that mutual funds increased their holdings in around 235 stocks over the last two quarters (September and December 2025). However, 2026, which is only a little over three months in, has seen more losers than gainers in this space. Notably, we identified 14 stocks that, despite remaining mutual fund favorites, have plummeted by 30–47% so far this year.(Data Source: ACE Equity) Smallcap stocks stumble

MF Favourites take a hit: 14 smallcap stocks slide up to 50% in 3 months

Investors often track mutual fund moves as a signal of deep, research-backed conviction. Yet in today’s uncertain market, even many of these carefully chosen bets have taken a hit, with sharp corrections in share prices. This raises a key question: are these stocks now attractive “bottom fishing” opportunities, or is it wiser to wait for further declines? Only time will reveal the right call.

A closer look at the small-cap segment shows that mutual funds increased their holdings in around 235 stocks over the last two quarters (September and December 2025). However, 2026, which is only a little over three months in, has seen more losers than gainers in this space. Notably, we identified 14 stocks that, despite remaining mutual fund favorites, have plummeted by 30–47% so far this year.(Data Source: ACE Equity)