Skip to main content

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.

Disclaimer: These are only suggestive technical rules that have been found to work well over time in the market. These are not any trading or investing recommendations. We suggest you to take advice from certified experts for trading and investing. Neither PickMyStox nor any of its associates are responsible for any trading or investing loss.

Comments

Post a Comment

Popular Tutorials

India's Q1 FY24-25 GDP Slowdown: How Share market will react?

India's Q1 FY24-25 GDP growth rate has decelerated to 6.7% from 8.2% in the previous year. This news has sparked mixed reactions in the market, with analysts and investors weighing the implications for the country's economic outlook. Key Takeaways  * Mixed Bag : While the slowdown indicates a cooling economy, which could help alleviate inflationary pressures, it also raises concerns about the sustainability of India's growth momentum.  * Market Reactions : The news is likely to have varying impacts on different asset classes:    * Equity Markets : A potential negative reaction due to concerns about India's growth prospects. However, if the slowdown is seen as temporary, the impact could be limited.    * Bond Markets : A potential positive reaction as investors may perceive lower inflation risks.    * Currency Markets : The Indian rupee could weaken against the US dollar as investor confidence in the economy may decline. However, the Re...
Post a Comment
Read more

Reliance Q1 Result: What is Good, Bad and Ugly?

Reliance Industries' Q1 results were a mixed bag, with positive aspects in revenue growth countered by a decline in net profit. The Good  * Revenue grew 12% year-on-year, driven by higher realizations in the oil-to-chemical (O2C) business.  * Reliance Retail, the company's retail arm, saw strong growth in both revenue and profit, indicating continued momentum in the segment.  * Jio, Reliance's telecom arm, also reported a marginal increase in profit quarter-on-quarter. The Bad  * Net profit fell 5.4% year-on-year, primarily due to rising input costs. This decline disappointed some investors who had anticipated higher profits.  * Jio's profit growth fell short of some analysts' expectations. The Ugly  * EBITDA margin narrowed by 1.5 percentage points year-on-year, indicating pressure on profitability. Overall Reliance's Q1 results paint a mixed picture. While revenue growth is a positive sign, the decline in net profit and margin compression rais...
Post a Comment
Read more