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Following SEBI's directive, fund houses have started disclosing stress test results of their mid and small cap funds twice a month.
These stress tests aim to see how fast fund managers will deal with redemption pressure during market instability. These tests focus on selling off 50% and 25% of the investments that need to be liquidated quickly.
In this article we will look at stress results of top 5 mid cap funds based on their assets.
HDFC Mid-Cap Opportunities Fund, which is the largest fund in the mid-cap category with AUM of Rs.59,000 crore, will need 23 days to sell off half of its investments and 12 days to sell off the next 25% of its investments.
Kotak Emerging Equity Fund, the second-largest scheme with AUM of Rs.39,000 crore, will require 34 days to liquidate 50% of its investments and 17 days to liquidate 25% of his investments.
Further, it will take the fund manager of Axis Midcap Fund 12 days to sell off 50% of the portfolio and 6 days to sell off 25% of the portfolio and Nippon India Growth Fund will require 7 days to liquidate 50% of the portfolio and 4 days to liquidate 25% of the portfolio.
Finally, SBI Magnum Midcap Fund will require 24 days to liquidate 50% of the portfolio and 12 days to liquidate 25% of the portfolio.
Here are the top five mid-cap funds based on their AUM (Specific fund)
HDFC Mutual Fund
|
50% of portfolio |
25% of portfolio |
AUM (in crore) |
|
23 Days |
12 Days |
Rs.59,000 |
Kotak Mutual Fund
|
50% of portfolio |
25% of portfolio |
AUM (in crore) |
|
34 Days |
17 Days |
Rs.39,000 |
Axis Mutual Fund
|
50% of portfolio |
25% of portfolio |
AUM (in crore) |
|
12 Days |
6 Days |
Rs.25,000 |
Nippon India Mutual Fund
|
50% of portfolio |
25% of portfolio |
AUM (in crore) |
|
7 Days |
4 Days |
Rs.24,000 |
SBI Mutual Fund
|
50% of portfolio |
25% of portfolio |
AUM (in crore) |
|
24 Days |
12 Days |
Rs.16,000 |
