5 most-bought small-cap stocks by mutual funds in July 2025

Summary: In July, mutual funds quietly ramped up their bets on select small-cap stocks, some seeing over 9 percentage points of fresh buying. From a Mumbai-based real estate player to a luxury watch retailer and a tyre recycler with global ambitions, the names span diverse sectors but have one thing in common: rising institutional conviction. Curious which five companies made the cut and why fund managers are backing them now? Read on to find out. Mutual funds were active buyers in the small-cap space this July, with select names seeing a sharp jump in institutional holdings. From real estate developers to niche financials, luxury retail to tyre recyclers, the buying interest spanned diverse sectors. Let’s take a look at the five small-cap stocks that saw the highest increase in mutual fund ownership last month and the stories behind why they’re catching attention. Company Stock Rating Mutual fund stake (July 2025) Mutual fund stake (June 2025) Change (% points) Marathon Nextgen Realty  ★★★★ 10.66% 1.57% 9.09 India Shelter Finance Corporation ★★★★ 14.97% 10.97% 4.00 Ethos ★★★ 16.23% 13.14% 3.10 Tinna Rubber and Infrastructure ★★★ 5.64% 3.02% 2.61 ICRA ★★★★★ 19.63% 17.34% 2.30 Marathon Nextgen Realty Marathon Nextgen Realty is a Mumbai-based real estate developer with a legacy dating back to 1969. Its diversified portfolio spans affordable housing, luxury residences, commercial spaces and townships across key MMR (Mumbai Metropolitan Region) micro-markets such as Panvel, Bhandup, Dombivli, Byculla and Lower Parel. With over 100 completed projects and 418 acres of land bank, it’s scaling up post-merger to unlock growth, backed by strong governance and Rs 900 crore QIP (qualified institutional placement) funding. P/E 5Y revenue growth 5Y net profit growth Re