- 1. What Did They Buy? (New Entrants)
- 2. What Did They Sell? (Exits)
- 3. Increasing and Decreasing Stakes
- The Strategy: Why These Changes?
- Snapshot: What Does the Current Portfolio Look Like?
- Conclusion
One of the most talked-about funds in the industry, the Quant Small Cap Fund, has released its portfolio data for December 2025. With a massive asset under management (AUM) of ₹29,785 crore, investors are always keen to know what fund managers are buying and selling.
In December, the fund made some notable shifts, investing in green energy and insurance while exiting a major public sector giant. Here is a simple breakdown of the changes.
1. What Did They Buy? (New Entrants)
The fund added 4 new stocks to its portfolio in December. These are companies where the fund manager sees fresh potential:
- Adani Green Energy
- HDFC Life Insurance
- Ravindra Energy
- S.P. Apparels
2. What Did They Sell? (Exits)
The biggest news is a complete exit from a major stock. The fund sold all its 7.35 lakh shares of Life Insurance Corporation (LIC). This means LIC is no longer part of the Quant Small Cap portfolio.
3. Increasing and Decreasing Stakes
Apart from new buys and exits, the fund adjusted its weight in existing holdings:
- Bought More: The fund increased its investment in 12 stocks, including Sun TV Network, Aarti Industries, Black Box, and Poly Medicure.
- Sold Some: The fund reduced its stake in 4 stocks, notably Reliance Industries, ONGC, and Bata India. Even though they sold some shares, these companies might remain in the portfolio, just with a smaller percentage.
The Strategy: Why These Changes?
You might wonder why a "Small Cap" fund holds big companies like Reliance or HDFC Life.
The fund house explained that they currently hold a "defensive view" of the market. To stay safe and ensure they can easily buy or sell shares (liquidity), they have kept a significant portion in Large Cap companies.
The Future Outlook:
However, the fund managers believe that Small Cap stocks will soon start performing better than the rest of the market. Therefore, they plan to increase their exposure to small-cap companies in the near future to catch up with the market rally.
Snapshot: What Does the Current Portfolio Look Like?
Based on the latest factsheet (as seen in the image), here is how the fund is positioned right now:
1. The Market Cap Mix
Even though it is a small-cap fund, it has a unique mix:
- Small Cap Stocks: 66.60% (The majority)
- Large Cap Stocks: 24.08% (For stability and liquidity)
- Mid Cap Stocks: 3.61%
2. Top 5 Holdings
The fund has high conviction in these five companies, which make up a large chunk of your money:
- Reliance Industries Ltd: 9.79% (The biggest holding)
- Jio Financial Services Ltd: 5.99%
- RBL Bank Ltd: 4.02%
- Aegis Logistics Ltd: 3.18%
- Adani Power Ltd: 2.90%
3. Sector Allocation
Where is the money invested sector-wise?
- Financial Services: 21.9% (Banks, NBFCs, etc.)
- Healthcare: 12.7% (Hospitals, Pharma)
- Oil & Gas: 13.2%
4. Performance Indicators
The data shows a Jensen’s Alpha of 7.27%. In simple terms, this means the fund has generated roughly 7% extra return compared to its benchmark, which is a strong indicator of the fund manager's performance over the last 5 years.
Conclusion
The December portfolio update reveals a strategic balancing act by the fund management. While the fund is technically a "Small Cap" scheme, the significant allocation to Large Caps (like Reliance and Jio Financial) shows a defensive approach to manage risk and ensure liquidity in the current market.
Disclaimer: The content is meant for education and general information purposes only. Past performance is not indicative of future returns. Mutual Funds are non-exchange traded products, and INDstocks is merely acting as a mutual fund distributor. All disputes with respect to distribution activity, would not have access to the exchange investor redressal forum or arbitration mechanism. Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), AMFI Registration No: ARN-254564, SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.