Mirae Asset Mutual Fund has disclosed that it would take eight days to liquidate 50% of the portfolio in its mid-cap fund and four days to liquidate 25%.
Mirae Asset MF has an AUM of Rs 14,543.1 crore in its mid-cap fund, while 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.
Tata Mutual Fund has disclosed that it will take three days to liquidate 50% of its portfolio in the mid-cap fund and two days to exit 25%.
Similarly, in the small-cap fund, it will take 35 days to sell 50% of its assets, and 18 days to liquidate 25%, according to its stress test results.
Tata MF has an AUM of Rs 3,293 crore, and Rs 6,289 crore in its mid-cap and small-cap fund respectively.
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.
UTI Mutual Fund has disclosed that it will take over 4 days (4.22) to liquidate 50% of its portfolio in the mid-cap fund and over 2 days (2.11) to exit 25%.
Meanwhile, in the small-cap fund, it will take over 4 days (4.3) to sell 50% of its assets, and over 2 days (2.15) to liquidate 25%, according to its stress test results.
UTI MF has an AUM of Rs 10,046.2 crore, and Rs 3,649.4 crore in its mid-cap and small-cap fund respectively.
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.
Quantum Asset Under Management reported that it will take just a day to liquidate 25% and 50% of its portfolio in its small-cap fund.
The small-cap fund has an AUM of Rs 39.18 crore, according to the stress test results for its small- and mid-cap funds following a directive by Association of Mutual Funds in India. Quantum AMC, meanwhile, does not have a mid-cap fund.
The top 10 investors collectively own 6.82% of the small-cap scheme.
As the market regulator SEBI wants stringent monitoring of schemes for potential risks, all asset management companies with small- and mid-cap schemes must undertake stress testing of their portfolios.
The move follows the Securities and Exchange Board of India communication with the mutual fund industry body, the Association of Mutual Funds of India, over the rising flows into such schemes. In the last year, small and midcap funds witnessed net inflows of over Rs 65,000 crore.
This stress test is based on the Association of Mutual Funds in India’s prescribed methodology to test liquidity that was stipulated at the end of February. These disclosures will be in addition to the risk-o-metre disclosed along with the schemes.
The results of the stress test should be disclosed by the end of the month. But, the market regulator will not interfere in the functioning of the AMCs and their business decisions.
Kotak Mutual Fund has disclosed that it would take 33 days to liquidate 50% of the portfolio of its small-cap fund and 17 days to liquidate 25%, based on the Association of Mutual Funds in India’s prescribed methodology to test liquidity.
In a similar vein, the mutual fund disclosed that it would take 34 days and 17 days, respectively, to liquidate 50% and 25% of its emerging equity scheme portfolio.
WhiteOak Capital Mid Cap Fund has disclosed that it would take 0.68 days to liquidate 50% of its AUM and 0.34 days to liquidate 25% , based on the Association of Mutual Funds in India's prescribed methodology to test liquidity.
The scheme has Rs 1,626.54 crore worth of assets under management.
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Motilal Oswal Mutual Fund could liquidate 50% of its small-cap fund portfolio in five days and two days to liquidate 25%, based on the Association of Mutual Funds in India's prescribed methodology to test liquidity.
The mutual fund disclosed that it would take 10 days and three days, respectively, to liquidate 50% and 25% of its midcap scheme portfolio.
Edelweiss MF Releases Result Of Its Stress, Liquidity Test
Asset management companies are disclosing the results of stress test for small and mid-cap schemes, as per an Association of Mutual Funds in India circular.
This notification is based on consultation between AMFI and the Securities and Exchange Board of India.
AMCs are required to disclose the results on their respective websites, as well as on AMFI’s website on a monthly basis.
AMFI and SEBI have collectively decided on the format of the disclosure, which will include:
Annualised Standard Deviation in respect of the scheme portfolio and scheme benchmark index.
Portfolio beta.
Portfolio trailing 12-month PE in respect of the scheme portfolio, as well as the scheme benchmark index.
Portfolio turnover.
AMCs will be required to gauge the portfolio liquidity under stress scenario for the mid-cap and small-cap funds to determine the days required to liquidate 25% and 50% of the portfolio.