Quant vs Bandhan, HDFC vs Edelweiss: How top midcap and small-cap funds shifted in May

Equity mutual fund inflows moderated in May 2026, but fund managers across the midcap and small-cap categories continued to actively tweak portfolios. A comparison of two leading small-cap funds and two popular midcap schemes shows differing approaches to navigating the market.

According to AMFI data, small-cap fund inflows declined by ₹1,940 crore month-on-month to ₹4,946 crore, while midcap fund inflows fell by ₹2,170 crore to ₹4,385 crore. Despite the slowdown, the two categories remained among the most preferred by investors, accounting for about 21% and 19%, respectively, of total equity inflows. On a year-on-year basis, inflows into small-cap and midcap funds were up 53.9% and 56.1%.

Quant vs Bandhan Small Cap

Quant Small Cap Fund

The Quant Small Cap Fund managed a relatively concentrated portfolio of 103 stocks in May and raised its net equity exposure to 97.1%.

The fund added five new stocks, including Sona BLW Precision Forgings, Apollo Tyres, Kaynes Technology, Exide Industries and Heritage Foods. It exited Minda Corporation and BASF India.

Among existing holdings, the fund increased exposure to Adani Green Energy, Adani Enterprises, Black Box and Manappuram Finance while trimming positions in Sequent Scientific, NBCC, Suven Life Sciences and Gland Pharma.

Reliance Industries remained the largest holding at 8.36%, followed by HFCL, RBL Bank and Adani Power. Pharmaceuticals, petroleum products and power were among the top sector exposures.

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Bandhan Small Cap Fund

Bandhan Small Cap adopted a much broader approach with a portfolio of over 250 stocks. Net equity exposure rose to 90%.

The fund made 11 fresh purchases, including Premier Energies, Sirca Paints, Voltamp Transformers and Petronet LNG, while exiting 11 stocks such as PB Fintech, Vedanta and Kirloskar Pneumatic.

The scheme aggressively added to 99 holdings, including State Bank of India, HDFC Bank, AWL Agri Business and Aditya Birla Sun Life AMC. It reduced allocations to 26 stocks, including Steel Authority of India, E2E Networks and Wockhardt.

Finance, banks and real estate emerged as its largest sectoral allocations, with Sobha, REC and SBI among the top holdings.

 

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HDFC vs Edelweiss Midcap

HDFC Mid-Cap Opportunities Fund

The largest midcap fund by assets, with an AUM of nearly ₹97,000 crore, maintained a conservative stance in May.

The scheme held 76 stocks and reduced net equity exposure marginally to 92.5%. It made no fresh purchases and exited only Ceat.

Exposure was increased to AU Small Finance Bank, PB Fintech, Aster DM Healthcare and Mahindra & Mahindra Financial Services, while positions in Union Bank, City Union Bank and Redington were trimmed.

Max Financial Services remained the largest holding at 4.49%, followed by AU Small Finance Bank and Federal Bank. Banking and pharmaceuticals continued to dominate sector allocations.

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Edelweiss Mid Cap Fund

In contrast, the Edelweiss Mid Cap Fund adopted a more active strategy. The scheme increased net equity exposure to 96.1% across a portfolio of 90 stocks.

It added seven new names, including JB Chemicals & Pharmaceuticals, Thermax, Laurus Labs and Netweb Technologies, while exiting six stocks, including Canara Bank, Hero MotoCorp and Mahindra & Mahindra Financial Services.

The fund raised stakes in 55 companies, including JSW Energy, HPCL, Sumitomo Chemical India, BSE and Mankind Pharma, while trimming holdings in AU Small Finance Bank, Muthoot Finance and Lupin.

Portfolio changes

The portfolio changes highlight how fund managers are responding differently to market conditions. Quant and Edelweiss opted for higher equity exposure and active repositioning, while Bandhan emphasized diversification and HDFC Midcap maintained a relatively stable portfolio.

Despite softer inflows in May, continued investor interest suggests that both midcap and small-cap funds remain key destinations for long-term equity investors.

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