MF Stress Test Result: DSP Mutual Fund Can Sell Half Of Small-Cap AUM In 32 Days

DSP Mutual Fund said on Friday that it could liquidate half of its small-cap fund portfolio in 32 days under certain conditions.

The fund house disclosed the stress-test results for its small- and mid-cap funds following a directive by the Association of Mutual Funds in India.

DSP Small Cap Fund can liquidate 25% of its Rs 13,703-crore assets under management in 16 days. For the DSP Mid Cap Fund, 50% of the Rs 16,302-crore AUM can be liquidated in 17 days and 25% in nine days.

The AMFI had instructed mutual-fund trustees to stress-test their small- and mid-cap schemes after SEBI raised concerns over valuations and rally in the small-cap stocks. The disclosure is meant to inform investors about potential risks.

Top-10 investors hold 1.64% in DSP Small Cap Fund and 1.82% in DSP Mid Cap Fund.

Small-cap funds have a minimum requirement of 65% of allocation under the category, according to the SEBI guidelines.