HDFC Mutual Fund has disclosed that it would take 42 days to liquidate 50% of the portfolio in its small-cap fund and 21 days to liquidate 25%.
In its mid-cap fund, the mutual fund house said that it would take 23 days to liquidate 50% of its portfolio and 12 days to liquidate 25%.
HDFC Mid-Cap Opportunities Fund and SBI Small-Cap Fund have assets under management of Rs 60,187 crore and 28,599 crore, respectively.
The top 10 investors collectively own 1.41% of the midcap scheme and 3.01% of the smallcap scheme.
HDFC Mutual Fund carried out a stress test based on the Association of Mutual Funds in India's prescribed methodology to check liquidity. The disclosure is the first of its kind for mid- and small-cap schemes, 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 disclosure, which also includes other details, such as the composition of the schemes' portfolio, is meant to inform investors about potential risks.
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