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. On the other hand, 82 of the 110 stocks —in which mutual funds held more than 1 per cent stake — have fallen less in the past three trading sessions. Tata Motors DVR and Max Financials, which also have high MF holdings, declined just 2 per cent and 0.7 per cent, respectively.

Source: Economic Times February 06, 2018 02:37 UTC