Mutual Fund stress test: Edelweiss Small Cap Fund to take 3 days for 50% portfolio liquidation

livemint.com:

₹3,198.9 crore would take three days for the liquidation of its 50% portfolio if a sharp selloff occurs in the stock market. The small cap fund would take two days to liquidate its 25% portfolio, as per data shared by Radhika Gupta, MD & CEO of Edelweiss Mutual Fund. Edelweiss Mid Cap Fund would take two days to liquidate half of its portfolio and only one day for 25% portfolio liquidation.

The fund has an AUM of ₹5,066.6 crore. “The stress test numbers for our funds look very good in absolute terms and this is without holding any cash or resorting to large cap exposure in small cap funds to manage this," Gupta said on X (formerly Twitter). The data was released after the Association of Mutual Funds in India (AMFI) along with the Securities and Exchange Board of India (SEBI) asked the asset management companies (AMCs) to conduct a stress test for small and mid-cap schemes and disclose the results by March 15.

Read here: AMFI issues circular on ‘stress test’ of mutual fund schemes; all you need to know The stress test is to be done once every 15 days starting March 15 and has to be published on AMC’s own websites and that of AMFI’s. According to the data shared by Gupta, the top 10 investors hold 1.56% in the Edelweiss Mid Cap Fund and 1.67% in the Edelweiss Small Cap Fund. On the portfolio diversification, the data showed that Edelweiss Mid Cap Fund’s holding included 17.3% in the largecaps, 66.6% in the midcaps and 13.7% in smallcap, while its cash holding was 2.6%.