Published: 15th March 2024
It is a test that helps check how quickly small- and mid-cap funds can sell 25% and 50% of their holdings.
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.
So, regulators have asked AMCs to conduct this test to make investors aware of these funds’ liquidity risks.
Let’s look at the stress test results of the top five largest mid-cap funds.
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
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
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
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
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
The numbers are as of March 15, 2024. Assets are as of February 29, 2024.