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.
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