Following a SEBI directive, AMFI has recently mandated fund houses to perform stress tests on their mid- and small-cap schemes.
MUMBAI, Mar 16 (The CONNECT) – Quantum AMC’s Small Cap Fund has said it has withstood the stress test as mandated by the Association of Mutual Funds in India (AMFI).
AMFI has recently mandated fund houses to perform stress tests on their mid- and small-cap schemes using data from the previous month following SEBI .
These findings are to be disclosed by March 15th, 2024.
Abhilasha Satale, Fund Manager- Equity , Quantum AMC, said the fund would be able to liquidate its 100% of portfolio holdings within 1day, based on the AMFI’s prescribed methodology.
The fund has 70.31% holding in Small Caps, 8.25% in large caps, 2.54% in mid caps and holds 18.9% in cash & liquid securities. Stress test is prudent way of making investors aware about the risks involved in their investments.
Even before SEBI issued this directive, at Quantum we have been following a robust investment framework with guardrails around liquidity and market cap ownership that defines the capacity to which the fund can scale without compromising the portfolio characteristics and liquidity traits., Satale said. “We have a liquidity filter of Rs. 2 crores of minimum average liquidity for the stocks over last 12 months,” she said.
Quantum Survives Stress Test
