The 5 largest mid-cap funds' stress test verdict

But first, what is a stress test?

It is a test that helps check how quickly small- and mid-cap funds can sell 25% and 50% of their holdings.

Why are fund houses conducting it?

SEBI and AMFI are concerned about large amounts of money (Rs 64,000 crore) being pumped into these funds post their stellar run in 2023.

Contd…

So, regulators have asked AMCs to conduct this test to make investors aware of these funds’ liquidity risks.

The results

Let’s look at the stress test results of the top five largest mid-cap funds.

#1 HDFC Mid-Cap Opportunities

Assets: Rs 60,187 crore, No of days to liquidate 25% of the portfolio: 12, No of days to liquidate 50% of the portfolio: 23

#2 Kotak Emerging Equity

Assets: Rs 39,732 crore, No of days to liquidate 25% of the portfolio: 17, No of days to liquidate 50% of the portfolio: 34

#3 Axis Midcap

Assets: Rs 25,248 crore, No of days to liquidate 25% of the portfolio: 6, No of days to liquidate 50% of the portfolio: 12

#4 Nippon India Growth

Assets: Rs 24,481 crore, No of days to liquidate 25% of the portfolio: 4, No of days to liquidate 50% of the portfolio: 7

#5 SBI Magnum Midcap

Assets: Rs 16,467 crore, No of days to liquidate 25% of the portfolio: 12, No of days to liquidate 50% of the portfolio: 24

Please note

The numbers are as of March 15, 2024. Assets are as of February 29, 2024.

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