HDFC Small Cap Fund Stress Test (March 2024): HDFC Mutual Fund has released the latest stress test report of its small cap fund. The result shows how much time HDFC Small Cap Fund fund will take to sell its portfolio in case a large number of investors apply for redemption in a bad market condition.

It has become mandatory for small cap mutual funds to do the stress test and publish the results on their websites as well as on the website of Association of Mutual Funds in India (AMFI) once every 15 days, starting from March 15, 2024. This means, you can see fresh stress test results of all small cap funds on AMFI’s website twice every month.

What does latest HDFC Small Cap Fund Stress Test says

HDFC Small Cap Fund’s Stress Test shows it will take 42 days to sell-off 50% of its portfolio. The fund house will take 21 days to liquidate 25% of its portfolio. This is as per the disclosure of Stress Test and Liquidity Analysis by HDFC Small Cap Fund for February 2024.

The stress test result of a mutual fund scheme shows how much time its AMC will take to sell its portfolio or liquidate holdings to meet demand in case a large number of investors apply for redemption in a bad market condition. (Learn more about the implications of Stress Test for mutual fund investors here)

As of 18 March 2024 , the total AUM of HDFC Small Cap Fund was Rs. 28,598.92 crore This includes investment in both regular and direct plans and across all growth and dividend options. The date of allotment of this scheme is 3 April 2008. The fund’s website shows it has given an annualized return of 16.5% since inception (as per data available on HDFC Small Cap Fund’s website on March 18, 2024). The fund has been managed by Chirag Setalvad since June 2014.

Also Read : SBI Small Cap Fund Stress Test (March 2024)

HDFC Small Cap Fund is an open ended equity scheme predominantly investing in small cap stocks.

You can also check the latest Stress Test report of HDFC Small Cap Fund and other schemes on AMFI’s website.

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