It may make sense to invest in companies with mutual funds holdings in adverse times. An ET study shows stocks with high mutual fund holdings fell less in the broad market selloff of the last few days, while stocks with minimal institutional holding plunged the most. Several mid- and small-cap stocks have declined up to 50 per cent in the last three trading sessions.
Of the 131 stocks with over Rs 500 crore market capitalisation that fell over 10 per cent in last three trading sessions, 45 were not held by mutual funds, while 40 had less than 1 per cent of mutual fund holdings.
