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Stress test results of mid-cap and small-cap funds

We provide a table to show how quickly these funds can sell 25 per cent and 50 per cent of their holdings

SEBI stress test: Results of mid-cap and small-cap funds

Fund houses have started disclosing the result of the stress test for their mid-cap and small-cap schemes. They'll be revealing the test result by the 15th of every month.

What is a stress test?

This test will check how quickly small-cap and mid-cap funds can sell 25 per cent and 50 per cent of their holdings.

Why is there a need for a stress test?

SEBI, the markets regulator, and AMFI (Association of Mutual Funds in India) have been concerned about the large quantities of investor money - around Rs 64,000 crore - being poured into mid-cap and small-cap funds following a stellar performance in 2023.

As a result, the regulators directed fund houses to run a liquidity analysis based on a specific methodology to evaluate how many days it will take for any fund to liquidate 25 and 50 per cent of its portfolio. This test will indicate how quickly these funds can sell their holdings if investors want to exit their investments en masse during a market crash.

For the uninitiated, mid- and small-cap funds face issues when their asset size increases. One key concern during such times is portfolio liquidity. Meaning, these funds can find it tough to sell their stake in the face of high redemption pressure from investors.

Stress test table

The results have been trickling in since yesterday (March 14, 2024). You can view the table below to see how healthy your funds are. The table will be updated as and when fund houses release their stress test results.

Stress test results of small-cap and mid-cap funds

Based on February 2024 data

Fund name AUM (Rs cr) No. of days to liquidate 25% of the portfolio No. of days to liquidate 50% of the portfolio
Mid-cap funds
HDFC Mid-Cap Opportunities Fund 60,194 12 23
Kotak Emerging Equity Fund 39,732 17 34
Axis Midcap Fund 25,248 6 12
Nippon India Growth Fund 24,494 4 7
SBI Magnum Midcap Fund 16,467 12 24
DSP Midcap Fund 16,302 9 17
Mirae Asset Midcap Fund 14,543 4 8
Franklin India Prima Fund 10,179 2 4
Sundaram Mid Cap Fund 10,157 2 4
UTI Mid Cap Fund 10,046 2.11 4.22
PGIM India Midcap Opportunities Fund 9,971 2 4
HSBC Mid Cap Fund 9,722 3.5 7
Motilal Oswal Midcap Fund 8,491 5 10
ICICI Prudential MidCap Fund 5,486 1 2
Quant Mid Cap Fund 5,443 3 6
Edelweiss Mid Cap Fund 5,070 1 2
Aditya Birla Sun Life Midcap Fund 4,982 2 4
Invesco India Midcap Fund 4,238 1 2
Tata Mid Cap Growth Fund 3,295 2 3
Mahindra Manulife Mid Cap Fund 2,154 0.29 0.57
Canara Robeco Mid Cap Fund 2,041 0.8 1.6
Baroda BNP Paribas Mid Cap Fund 1,791 1 1
WhiteOak Capital Mid Cap Fund 1,627 0.34 0.68
Bandhan Midcap Fund 1,073 0.22 0.45
Union Midcap Fund 1,049 0.16 0.32
JM Midcap Fund 813 0.3 0.6
ITI Mid Cap Fund 714 0.09 0.18
LIC MF Mid Cap Fund 243 0.05 0.09
Taurus Mid Cap Fund 117 0.1 0.1
Small-cap funds
Nippon India Small Cap Fund 46,030 13 27
HDFC Small Cap Fund 28,597 21 42
SBI Small Cap Fund 25,534 30 60
Axis Small Cap Fund 19,604 14 28
Quant Small Cap Fund 17,233 11 22
Kotak Small Cap Fund 14,189 17 33
HSBC Small Cap Fund 13,744 7.25 14.5
DSP Small Cap Fund 13,703 16 32
Franklin India Smaller Companies Fund 11,825 6 12
Canara Robeco Small Cap Fund 9,586 6.74 13.49
ICICI Prudential Smallcap Fund 7,414 5 10
Tata Small Cap Fund 6,274 18 35
Aditya Birla Sun Life Small Cap Fund 5,382 5 10
Bandhan Small Cap Fund 4,385 1.31 2.61
Invesco India Smallcap Fund 3,705 2 4
UTI Small Cap Fund 3,649 2.15 4.3
Mahindra Manulife Small Cap Fund 3,533 1.51 3.03
Edelweiss Small Cap Fund 3,142 2 3
Sundaram Small Cap Fund 3,024 3 5
ITI Small Cap Fund 1,766 0.62 1.24
Motilal Oswal Small Cap Fund 1,492 2 3
PGIM India Small Cap Fund 1,436 1 3
Union Small Cap Fund 1,328 0.66 1.32
Baroda Bnp Paribas Small Cap Fund 1,325 1 1
Bank Of India Small Cap Fund 920 1 2
LIC Mf Small Cap Fund 212 0.22 0.45
Quantum Small Cap Fund 39 1 1
Source: Respective AMC website

Also read: Are your mid and small-cap funds under stress?


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