Small and Midcap Funds Stress Test: How India’s top 5 fund houses performed in 2nd round – Details here
The second round of stress test and liquidity analysis for small and midcap funds appeared slightly better compared to the previous month’s results. Asset management companies (AMCs) were asked by capital market regulator Sebi to start conducting a regular stress test on their small and midcap funds to see how prepared the fund houses are to meet any sudden surge in redemption requests by their subscribers. Take a look at the performance of India’s top five fund houses in the stress test results for March 2024.
In the stress test results for March published on AMFI website, India’s largest Fund House SBI Mutual Fund showed that its smallcap fund would now take 58 days to liquidate 50% of its portfolio against 60 days earlier. To liquidate 25% of its smallcap assets, the fund house would now take 29 days against 30 days showed in the previous test result.
In the midcap category, however, SBI Magnum Midcap Fund Regular saw its liquidity position going down slightly as now it would take 26 days to liquidate 50% of its portfolio against 24 days earlier. The fund house showed that it needed 13 days to liquidate 25% portfolio against 12 days mentioned in the results for February 2024.
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India’s second largest fund house ICICI Prudential Mutual Fund’s data showed that its ICICI Prudential Smallcap Fund would now take 11 days to offload half of its portfolio against 10 days earlier and 6 days to liquidate 25% against 5 days earlier. There is no change in its srtess test for midcap fund ICICI Prudential MidCap Fund as the AMC would still need 2 days to liquidate 50% portfolio and 1 day to offload 25%.
HDFC Mutual Fund, India’s
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