5 most-sold small-cap stocks by mutual funds in May 2025

May 2025 wasn’t just about fresh bets—mutual funds also pared exposure to a few small-cap stocks. Whether due to profit booking, changing conviction or concerns over near-term outlook, some stocks saw meaningful exits. And the list cuts across sectors—from real estate to fertilisers and financials. Here are the five small-cap stocks where mutual fund holding dropped the most in May 2025. Company Stock Rating Mutual fund stake % (May 2025) Mutual fund stake % (April 2025) Change (% points) Mahindra Lifespace Developers  ★ 11.0 16.8 -5.8 Utkarsh Small Finance Bank ★★★ 1.0 4.3 -3.3 Heubach Colorants India  ★★★★ 2.2 4.6 -2.4 Paradeep Phosphates  ★★★ 18.5 20.7 -2.2 CarTrade Tech  ★★★ 10.0 11.8 -1.8 Mahindra Lifespace Developers Mahindra Lifespace Developers is the real estate arm of the Mahindra Group, operating across two segments—residential projects and integrated industrial clusters. Its key markets include the Mumbai Metropolitan Region (MMR), Pune and Bengaluru.  In FY25, it reported residential sales of Rs 2,804 crore and Rs 495 crore from the industrial business. The company has 1,634 acres of land available for future leasing. All revenues are generated from domestic operations. P/E 5Y revenue 5Y net profit  Return on equity Return on capital employed 124 -9.43 per cent 34.33 per cent 5.4 per cent 2.6 per cent Utkarsh Small Finance Bank Utkarsh SFB is a scheduled commercial bank with a strong focus on financial inclusion, primarily serving rural and semi-urban areas. Its lending portfolio is led by micro-banking loans (49 per cent), followed b