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Written By: Rajeev Kumar
AMFI had recently asked mutual fund companies to conduct stress tests and publish the results on their website. The results are out!
The Stress Test result gives an idea about how much time a fund will take to liquidate its assets if a large number of investors suddenly decide to redeem.
AMFI had recently asked mutual fund companies to conduct stress tests and publish the results on their website. The results are out!
Based on the stress test, investors can take appropriate decisions to rebalance and redirect their liquidity and savings.
Here's a look at the time some of the largest small cap funds will take to liquidate their assets.
1. Axis Small Cap would need 28 days to liquidate 50% of its portfolio. It has AUM of Rs 19,606 crore.
2. Nippon India Small Cap Fund would need 27 days to sell-off 50% of its portfolio. It has AUM of Rs 46,000 crore.
3. DSP Small Cap Fund would need 32 days to sell-off 50% of its portfolio. It has AUM of Rs 13,703 crore.
4. Quant Small Cap Fund would take 22 days to sell-off 50% of its portfolio.
5. Edelweiss Small Cap Fund would take 3 days to liquidate 50% of its portfolio in the event of a sharp market selloff.
6. Aditya Birla Small Cap Fund would take 5 days to liquidate a quarter of its portfolio.
If you are invested in any other small cap fund, you can check the stress test result on its website.
Note: You shouldn't make an investment decision based on liquidity stress test result only. Consult a SEBI-registered investment advisor for proper guidance.
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