Nippon India Mutual Fund (MF) released its first stresstest report of small cap and midcap schemes on Thursday. In the report, the fund house said that it OB EITEI I 50% of largest 27 days to liquidate 50 per cent of the [R{lLTEFEIIT small cap fund port- &L folio and 13 days to offload 25 per cent of the assets.
The fund house manages the largest small cap fund with assets under management of 346,044 crore. The scheme has not been accepting lump sum inflows since July 2023. The stress test calculates the number of days required to liquidate assets based on their recent trading volumes. 27 days, 25% in 13 days: Report The format, designed by the Association of Mutual Funds in India, also sets other specific conditions such as adopting a pro-rata basis of liguidation after removing the 20 per cent least liguid holdings.
For the test, MFs have to assume a 10 per cent participation volume and three times the volume. Regarding the midcap scheme, the fund house stated that 50 per cent of the assets can be sold in seven days and 25 per cent in four days. The midcap scheme, Nippon India Growth Fund, manages 324,480 crore. ABHISHEK KUMAR'
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