NDTV Profit's video: What Is Stress Test In Mutual Funds Mutual Funds Stress Test Results Out

Mutual Fund Stress Test News: Nippon Mutual Fund has disclosed that it would take 27 days to liquidate 50% of the portfolio of its small-cap fund and 13 days to liquidate 25%, based on the Association of Mutual Funds in India's prescribed methodology to test liquidity. The mutual fund disclosed that it would take seven days and four days, respectively, to liquidate 50% and 25% of its midcap scheme portfolio. The disclosure on the mid- and small-cap schemes is based on a notice sent by the industry body AMFI to mutual fund trustees at the behest of the Securities and Exchange Board of India, amid concerns on valuations and rally in the small-cap stocks. The disclosure is meant to inform investors about potential risks.