New Delhi, May 8 -- The investment landscape of the March 2025 quarter (Q4 FY25) saw a notable contrarian move by mutual funds. Amid broader market discussions about stretched valuations, these institutional investors strategically allocated significant capital to a select group of mid- and small-cap stocks.

A Mint analysis of mutual fund shareholding data across 1,168 BSE's large-, mid-, and small-cap shows a clear pivot toward underperforming names with perceived turnaround prospects. Five stocks-TeamLease Services, Happiest Minds Technologies, South Indian Bank, Max Financial Services, and AWL Agri Business-stood out for seeing the steepest surge in institutional interest, despite lagging stock prices.

A bet despite weak show

Small-...