These smallcap funds emerge as winners in stress test! Do you have in your portfolio? Steps to check funds’ test results

financialexpress.com:

Midcap and smallcap funds stress test results: After a month of disclosing stress test results for their mid- and smallcap portfolios following regulator SEBI’s “froth” concerns, asset management companies have come out with March month’s data showing how prepared they are to meet liquidity challenges in case 50% or 25% of their mid and smallcap portfolios need to be offloaded.

Fund houses are required to disclose stress test results on their mid and smallcap schemes on 15th of every month. The first test results were out in March capturing February data.

Compared with the test results of first round, the data for March showed a slight improvement. If you look at the stress test data of top 10 smallcap funds in terms of assets under management, five of them improved and three slipped on number of days they would take to liquidate half and one-fourth of their portfolios.

Also Read: Small and Midcap Funds Stress Test: How India’s top 5 fund houses performed in 2nd round – Details here

SBI Small Cap Fund, Axis Small Cap Fund, Quant Small Cap Fund, HSBC Small Cap Fund, Tata Small Cap Fund showed good improvement as data suggests that all these funds would now take lesser number of days to liquidate 50% and 25% of their schemes than what they needed earlier.

On the other hand, India’s biggest smallcap fund in terms of AUM, Nippon India Small Cap Fund, slipped. Now the fund would need 29 days and 15 days to liquidate its 50% and 25% portfolios, respectively, against 27 days and 13 days earlier.

HDFC Small Cap Fund would need 44 days and 22 days to liquidate 50% and 25% of its portfolio against 42 days and 21 days earlier.

Kotak Small Cap Fund would need 34 days to offload 50% of its portfolio against 33 days earlier. To wind