Mutual funds have released the results of their first stress test on small and midcap schemes.

The disclosure follows a directive by the Association of Mutual Funds in India (Amfi) amid Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch sounding caution on “froth’’ in some of these stocks.

The stress test shows the time taken by fund houses to liquidate 50 per cent of their assets under management (AUM) and 25 per cent of their AUM.

Data available at the Amfi website showed in the case of midcap schemes, the number of days taken for liquidating 50 per cent of the portfolio ranged from a low of 0.45 (Bandhan Midcap Fund) to 34 days for Kotak Emerging Equity Fund.

When it came to offloading 25 per cent of the portfolio, it ranged from 0.22 to 17 days.

In the mid-cap category, HDFC Mid-Cap Opportunities Fund is the largest player with
with AUM of Rs 60,194 crore.

It would take 23 days to liquidate 50 per cent of its portfolio and 12 days for 25 per cent of the stocks held.

Kotak Emerging Fund has AUM of Rs 39,372.38 crore: it would take 34 days to liquidate 50 per cent of the stocks and 17 days to liquidate 25 per cent.

For Axis Midcap Fund with AUM of Rs 2,5247.94 crore, it is 12 days and 6 days, respectively.

Nippon India Growth Fund, the fourth largest midcap fund at Rs 24493.62 crore,
it will take 7 days to dispose of 50 per cent of the portfolio and 4 days to dispose of 25 per cent.

Smallcaps

In smallcap funds, the time taken to sell 50 per cent of the portfolio ranges from 1 for Baroda BNP Paribas Small Cap Fund and Quantum Small Cap Fund to 60 days for SBI Small Cap Fund. It ranges from 1-30 days to liquidate 25 per cent of the portfolio.

Nippon India Small Cap Fund with AUM of Rs 46,029.84 crore can liquidate 50 per cent of the portfolio in 27 days and 13 days for 25 per cent of its portfolio.

It stands at 42 days and 21 days, respectively, for HDFC Small Cap Fund which has AUM of Rs 28,597.05 crore.