Stress test: SBI MF can take up to 60 days to liquidate its small- and mid-cap portfolios

SBI Small Cap Fund (SSCF) has broken records so far as far the stress tests are concerned. At Rs 25,533.78 crore, the scheme has reported that it would take up to 60 days to liquidate 50 percent of its portfolio. This is the highest number of days that any scheme has reported so far. In fact, it will take 30 days to liquidate 25 percent of its portfolio, also the highest number reported so far in the 25-day liquidity segment. At the time of going to print around noon of March 15, nearly 13 fund houses have reported their stress test numbers.

SBI Mid Cap Fund (SMCF) has reported that it would take 24 days to liquidate 50 percent of its portfolio. SMCF’s size is Rs 16,467.43 crore and is India’s 5th largest mid-cap fund. SSCF is India’s 3rd largest small-cap fund.

Also read | Mutual Fund stress test: Edelweiss Small Cap Fund to take 3 days for 50% liquidation

Both the schemes have a small exposure to large-cap stocks as SMCF has a little under 8 percent and SSCF has 6 percent. The portfolios of both these funds are as much priced as those of their benchmark indices; in fact SMCF’s portfolio is over-valued (30.36 times) than that of its benchmark index (28.88 times). Both schemes have reported lower volatility numbers than their benchmark indices.