The 5 largest small-cap funds' stress test results are out

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 verdict

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

#1 Nippon India Small Cap

Assets: Rs 46,044 crore, No of days to liquidate 25% of the portfolio: 13, No of days to liquidate 50% of the portfolio: 27

#2 HDFC Small Cap

Assets: Rs 28,599 crore, No of days to liquidate 25% of the portfolio: 21, No of days to liquidate 50% of the portfolio: 42

#3 SBI Small Cap

Assets: Rs 25,534 crore, No of days to liquidate 25% of the portfolio: 30, No of days to liquidate 50% of the portfolio: 60

#4 Axis Small Cap

Assets: Rs 19,604 crore, No of days to liquidate 25% of the portfolio: 14, No of days to liquidate 50% of the portfolio: 28

#5 Quant Small Cap

Assets: Rs 17,233 crore, No of days to liquidate 25% of the portfolio: 11, No of days to liquidate 50% of the portfolio: 22

Please note

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

To get more such valuable insights, keep reading Value Research

See More