MFs' Favourite: 13 smallcap stocks surge up to 170% in FY26 so far, 5 turn multibaggers

As December-quarter shareholding data rolls in for over half the BSE smallcap universe—about 706 companies—a clear trend is emerging. Mutual funds have quietly raised stakes in nearly 205 smallcap stocks since September. The market has already responded: around 80 of these names have logged double-digit gains in FY26.The real standouts are 13 smallcaps that have delivered staggering returns of 70% to 170% in under 10 months—precisely the ones where MFs upped their holdings in Q3 FY26. Notably, five of them have more than doubled investor wealth. It’s a revealing look at where smart money is flowing and which stocks are leading the charge. (Data Source: ACE Equity) MF Hotpicks