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SEBI Stress Test Result Report | Mutual Funds Stress Test Results Reported to SEBI

 


The SEBI stress test conducted on mutual funds aimed to assess the liquidity of mid and small-cap portfolios, evaluating how quickly fund managers could sell assets to meet redemption requests. 

This test revealed varying durations for different funds to liquidate portions of their holdings. 

  • SBI Mutual Fund's small-cap fund would take 60 days to liquidate 50% of its portfolio 
  • Quant Mutual Fund disclosed that their small-cap fund would take 22 days to liquidate 50% of its holdings . 
  • Edelweiss MF stated that their small-cap fund could be liquidated in three days for 50% of the holdings 
  • Nippon India Mutual Fund reported that it would require up to 27 days to liquidate 50% of its SmallCap fund portfolio

These stress tests are crucial for ensuring funds have sufficient liquidity to handle sudden redemption requests and provide investors with insights into the ease of withdrawing their investments from these funds.

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