How to find potential Multibagger stocks before everyone else does?
- Kiran S N
- Nov 10
- 2 min read
What if you could have spotted Kalyan Jewellers before it doubled?
Turns out, there’s a smart way to catch such moves early...not by insider tips or luck, but by quietly tracking where some of India’s best fund managers are placing their bets.
The Idea: Follow the Smart Money
Mutual funds, especially those consistently delivering top-tier returns leave behind valuable clues. Their portfolio updates, available publicly every month, reflect what India’s top fund managers are accumulating or exiting.
The logic is simple: when a high-performing fund steadily increases exposure to a stock, it signals rising conviction.
Take the case of Kalyan Jewellers. The Motilal Oswal Midcap Fund started with a 4.29% allocation and gradually built it up to 9% .If you’d been tracking that increase, you’d have noticed something big was brewing, well before the stock’s 100% run.
The Two-Step Framework
This approach isn’t about stock tips; it’s about pattern recognition. Here’s how we break it down.
Step 1: Pick the Right Fund
Start by filtering for funds with a strong, consistent track record and a reputation for research discipline. In our example, we looked at the Motilal Oswal Small Cap Fund.
Why this step matters: great fund managers often act as early identifiers of emerging businesses that later turn into market leaders.
Step 2: Dive Into the Portfolio
Now comes the detective work analyzing their latest portfolio.
Websites like Trendlyne.in or Screener.in list the fund’s holdings along with month-by-month changes. Look out for two indicators:
New Additions: Stocks that appear as “New” are fresh entries, the fund has just started investing.
Exposure %: The allocation size matters. A higher exposure on a new stock means higher conviction.
For instance, in Motilal’s funds, even a 1.5% exposure is meaningful, since top holdings typically sit around 5-10%.
These small data points often reveal big stories forming beneath the surface.
Why This Works (and When It Doesn’t)
This strategy works because fund managers have access to deep research and management insights that retail investors rarely do. By tracking their conviction moves, you’re indirectly leveraging their groundwork.
However....and this is crucial.....this isn’t an automatic buy signal. Sometimes funds build a position and later trim it quietly. Or the stock could already be priced in.
So always follow up with:
Fundamental analysis of the company’s financials, and
Tracking subsequent portfolio changes (is the fund still adding or reducing exposure?).
The Takeaway
You don’t need insider access to find quality ideas, you just need to read between the lines of public data.
By understanding why funds are buying and how much conviction they’re showing, you turn yourself from a passive observer into a research-oriented investor.
Next time you check a fund’s factsheet, don’t just look at returns...look at what they’re quietly accumulating. That’s where the next Kalyan Jewellers might be hiding.
If you want to see how this works in practice I'll link the YouTube video here 👇
Disclaimer: This content is for educational purposes only; please conduct personal research and consult a qualified investment advisor before making any investment decisions.
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