More than 20 mutual fund schemes pared exposure across 18 mid-cap and small-cap stocks in September, trimming stakes by as much as 70%. Aditya Birla Fashion and Raymond saw the sharpest cuts as managers rotated toward financials and large-caps ahead of Q4. Analysts attributed the rebalancing to stretched valuations and SEBI’s portfolio-concentration guidelines. Flows into SIPs remain robust, providing long-term stability, though short-term sentiment in smaller names has softened as valuations normalize post-rally.