Gland Pharma and CAMS Among 5 Smallcap Stocks Sold by Mutual Funds in August

Mutual Funds Sold Five Smallcap Stocks in August

Mutual funds reduced their exposure to several smallcap stocks during August 2026, with five companies recording the highest net selling, according to data from Dolat Capital cited by Economic Times.

The list included stocks from healthcare, finance, oil and gas and consumer durables. Gland Pharma recorded the highest net selling among the five, while Amber Enterprises India saw the lowest net selling in the group.

The data provides a snapshot of mutual fund portfolio activity during the month. However, net selling by mutual funds does not by itself indicate a change in a company's business fundamentals or future investment prospects. 

Top 5 Smallcap Stocks Sold by Mutual Funds in August 2026

StockSectorNet Sell ValueGland PharmaHealthcareRs 562 croreLIC Housing FinanceFinanceRs 425 croreGujarat EnergyOil & GasRs 415 croreCAMSFinanceRs 368 croreAmber Enterprises IndiaConsumer DurablesRs 315 crore

Source: Dolat Capital, as cited by Economic Times; August 2026 data. 

Gland Pharma Sees Highest Mutual Fund Selling

Gland Pharma topped the list, with mutual funds recording net selling of approximately Rs 562 crore during August.

The company operates in the healthcare and pharmaceutical space. Its inclusion at the top of the list means the value of mutual fund selling exceeded buying by the reported amount during the month.

The data should be viewed specifically as net mutual fund selling, rather than as a measure of the company's stock-price performance or business performance. 

LIC Housing Finance Sees Rs 425 Crore Net Selling

LIC Housing Finance was the second-largest stock on the list, with net mutual fund selling of around Rs 425 crore.

The company belongs to the financial services sector and was one of two finance-related names among the five stocks highlighted in the report.

Mutual fund portfolio changes can occur for several reasons, including profit booking, portfolio rebalancing, changes in sector allocation, valuation considerations or shifts in a fund manager's investment strategy.

Gujarat Energy Records Rs 415 Crore Net Selling

Gujarat Energy was next, with mutual funds recording net selling of approximately Rs 415 crore in August.

The company was identified under the oil and gas sector in the Economic Times report.

The stock's position on the list indicates a substantial reduction in mutual fund exposure during the month, although the data does not by itself explain why individual fund managers reduced their positions. 

CAMS Sees Rs 368 Crore Net Selling

CAMS, a financial services company, recorded net mutual fund selling of approximately Rs 368 crore in August.

CAMS is closely associated with India's mutual fund ecosystem through its role as a registrar and transfer agent. Despite this connection to the mutual fund industry, the company itself was among the stocks that saw significant net selling by mutual funds during the month.

The reported figure represents aggregate net selling and should not be interpreted as every mutual fund scheme reducing its holding.

Amber Enterprises India Records Rs 315 Crore Selling

Amber Enterprises India recorded net mutual fund selling of approximately Rs 315 crore in August, placing it fifth among the stocks highlighted by Dolat Capital.

The company belongs to the consumer durables segment.

The Economic Times report noted that small-cap consumer durable companies experienced outflows within the consumer durables segment during August. 

Smallcap Mutual Fund Activity Was Not Uniform

The selling of these five stocks does not mean mutual funds reduced exposure to the entire smallcap universe.

Separate data from Motilal Oswal Financial Services showed that mutual funds were net buyers in 64% of the Nifty Smallcap 100 stocks in August 2026. This indicates that buying remained broader across the smallcap segment even as some individual companies experienced significant selling. 

This distinction is important because mutual fund portfolio activity can involve rotation within the same market-cap segment. Fund managers may reduce exposure to some stocks while increasing exposure to others.

Why Do Mutual Funds Sell Smallcap Stocks?

There can be several reasons behind a mutual fund's decision to reduce a stock holding.

These may include:

• Portfolio rebalancing

• Profit booking after a period of price appreciation

• Changes in company valuations

• Expectations about future earnings

• Changes in sector allocation

• Risk-management considerations

• Better opportunities elsewhere in the market

• Changes in the fund's investment strategy

The available net-selling data does not establish which of these factors drove selling in each individual stock.

Mutual Fund Selling Does Not Automatically Mean a Stock Is Weak

Investors should be careful when interpreting mutual fund selling data.

A fund manager may sell a stock even when the underlying company continues to perform well. Similarly, a reduction may reflect portfolio construction rather than a negative view of the business.

In addition, aggregate net selling combines buying and selling activity across multiple mutual fund schemes. It therefore does not necessarily mean that every fund holding the stock exited or reduced its position.

How Investors Should Read Mutual Fund Portfolio Changes

Investors tracking mutual fund activity should look beyond a single month's buying or selling.

Useful factors to examine include:

• Changes in the number of mutual funds holding the stock

• Changes in total shares held

• Company's quarterly earnings

• Revenue and profit growth

• Debt and cash-flow position

• Current valuation

• Sector outlook

• Promoter holding and shareholding trends

• Institutional ownership trends

• The investment horizon

A single month's portfolio change is better viewed as one data point rather than a standalone investment signal.

Smallcap Stocks Can See Higher Portfolio Volatility

Smallcap stocks can experience greater price and liquidity fluctuations than larger companies. As a result, mutual fund managers may periodically adjust holdings to manage portfolio risk or take advantage of changing valuations.

The August selling data also shows that selling was spread across different sectors rather than being concentrated in only one industry. Gland Pharma represented healthcare, LIC Housing Finance and CAMS represented finance, Gujarat Energy represented oil and gas, and Amber Enterprises India represented consumer durables. 

What Investors Should Watch Next

The key question for investors is whether mutual fund selling continues in subsequent months or represents a one-month portfolio adjustment.

Investors can monitor future monthly shareholding disclosures and compare them with company fundamentals.

For each stock, investors may want to examine whether:

1. Mutual fund ownership continues to decline.

2. Other institutional investors are increasing or reducing exposure.

3. Earnings growth is improving or weakening.

4. Valuations have become more or less attractive.

5. The company's business outlook has changed.

6. The selling is concentrated among a few funds or spread across many schemes.

This approach can provide more context than simply looking at the headline net-selling figure.

Bottom Line

Gland Pharma, LIC Housing Finance, Gujarat Energy, CAMS and Amber Enterprises India were the five smallcap stocks identified by Dolat Capital as having the highest mutual fund net selling in August 2026.

Gland Pharma recorded the highest net sell value at Rs 562 crore, followed by LIC Housing Finance at Rs 425 crore, Gujarat Energy at Rs 415 crore, CAMS at Rs 368 crore and Amber Enterprises India at Rs 315 crore. 

However, the selling should not be interpreted in isolation. Other data shows that mutual funds were net buyers in a majority of Nifty Smallcap 100 stocks during August, suggesting that portfolio activity involved both buying and selling across the segment. 

For investors, the more useful approach is to combine institutional holding changes with earnings, valuations, business prospects and portfolio-level risk before drawing conclusions about any individual smallcap stock.