BANGALORE: Year 2014 has been a year of revival for India's equity mutual fund investors. Most of them are back in the black after witnessing wealth erosion for nearly three years. With the trade having leading stocks at trade that too at higher rates, domestic fund managers are scanning the lesser-known universe of mid- and small-cap stocks to identify winners. Small-cap and mid-cap stocks have risen sharply since the beginning of the year after a long lull.

While Sensex rose 32 percent the BSE Mid-cap index surged 47 percent and the BSE Small-cap index by 67 percent. This has boosted the performance of mid-cap and small-cap funds, which has, in turn, compelled retail investors to pump in money into mid- and small-cap schemes.

Let’s have a look at some of the small cap stocks for which mutual funds are confident about:

1. Atul Auto

Atul Auto, an Atul group company was originally incorporated as a Atul Auto (Jamnagar) Pvt. Ltd on June 18, 1986 under the Companies Act, 1956, in the State of Maharashtra. The company seems to have started with a small capital of only Two thousand Rupees in 1986, and now it has achieved a turnover of 168 crore.

The Company is the leading manufacturers of 3–Wheeled Commercial Vehicles in the state of Gujarat, presently engaged in the manufacture of Three Wheelers like 6–seater Auto Rickshaws, Pick–Up Vans and Chassis of Passenger Vehicles. These vehicles are marketed under the brand name of KHUSHBU, which is well established and very popular. Birla Mutual Fund has bought this stock of nearly 5 lakh shares. Its current price is 554.55.