Edelweiss Mutual Fund has reported that it would take two days to liquidate 50% of the portfolio in its mid-cap fund and just a day to liquidate 25%.
This result is based on the Association of Mutual Funds in India's prescribed methodology to test liquidity that was stipulated at the end of February.
Further, in its small-cap fund, it said that it would take three days to liquidate 50% of its portfolio and two days to liquidate 25%.
The disclosure comes after Quant Mutual Fund led the pact to report its stress test result, based on a notice sent by the industry body AMFI to mutual fund trustees at the behest of the Securities and Exchange Board of India.
The stress test numbers for Edelweiss MF look "very good" in absolute terms and this is without holding any cash or resorting to large-cap exposure in small-cap funds to manage this, Radhika Gupta, managing director and chief executive officer, Edelweiss Mutual Fund, said in a post on X.
"It's because well before this was a regulatory matter, as it rightly should be, we watched liquidity carefully in our funds and even disclosed this in our factsheets. We're happy to see this matter now getting the attention it deserves."
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