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4 reasons why MFs are stocking up on CreditAccess Grameen and other microfinance lenders

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Synopsis
The mutual fund holding in microfinance lenders like CreditAccess Grameen and Fusion Micro has been on a rise despite the stocks underperforming the benchmark. Here are the reasons why fund houses are bullish on them.

Since January 2024, Taurus Mutual Fund started building position in CreditAccess Grameen, India’s leading standalone microfinance lender with market cap of INR20,300 crore. With big purchases made in May, the company’s weightage in Taurus Mid Cap Fund has gone up from 0.24% to 3.31%, according to Trendlyne data. Similar is the case with Fusion Micro Finance where mutual fund stakes are rising. Microfinance companies have underperformed a bull