QUANT MUTUAL FUND STRESS TEST
Quant Mutual Fund investors withdraw Rs 1,400 crore in 3 days. Should you stop fresh investments, SIPs?
The client withdrawals are among the first indicators of the probe’s impact. The Securities and Exchange Board of India is reviewing alleged front-running trades by Quant Mutual Fund employees, Bloomberg News reported earlier this week, citing people familiar with the matter.
Quant MF reassures investors: Gross inflows normal, liquidity position robust
Quant MF reaffirmed its commitment to fully cooperate with the Sebi during its ongoing review, as reported by ET Now on Wednesday. The fund house has assigned dedicated personnel to provide regular data to the regulator.
Hold your horses, Morningstar tells Quant MF investors rushing for the exit door
Quant Mutual Fund's net asset values experienced a slight dip on Monday, with the Quant PSU Fund seeing the largest decrease of up to 1.09%. Small-cap and mid-cap funds also saw minor decreases of 0.66% and 0.94%, respectively.
Why investors should not panic or stop SIP in Quant Mutual Fund after front-running crisis
Experts advise staying invested in Quant Mutual Fund despite short-term NAV fluctuations and regulatory investigations. Monitoring the situation closely and being prepared for potential impacts is recommended for long-term investment goals.
How many days will Quant Mutual Fund require to liquidate 50% of its small and midcap portfolio? Check stress test result
According to the stress test results from the Quant Mutual Fund, the trailing 12-month PE ratio for the midcap fund benchmark has risen above its levels from one year ago and two years ago. For the smallcap index, the trailing 12-month PE ratio is higher than it was one year ago and close to its level from two years ago.
No bias, no emotion; With quant funds the 'matrix' takes the calls
Quant funds build a portfolio by selecting stocks on predetermined rules based on mathematical models. They use automated programs to enter and exit stocks and hence eliminate human or fund manager bias.
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How to stress test your investment portfolio with 3 simple questions
Learn simple steps to test your personal investment portfolio for stress and take corrective actions to ensure financial preparedness. While the stress tests conducted by AMCs may be complex, as individual investors, we should also undertake simple steps to test our personal portfolios for stress and take corrective actions if needed so that we are well-prepared for any financially stressful situation.
Small-cap mutual funds assets soar 83% to Rs 2.43 lakh crore in FY24 on retail investor boom
Gopal Kavalireddi, Vice President - Research at FYERS, said that the growth trajectory of India's economy is attracting increased interest, leading many unlisted small-cap firms to seek support from the capital market. This trend offers promising opportunities for investors eyeing long-term growth prospects.
Mutual fund assets rose 35% in FY24, hit new highs: AMFI
The share of assets of these categories increased from 45% in March 2019 to 58% in March 2024. The folio share declined from 84% in March 2019 to 80% in March 2024. The equity-oriented MF categories grew by 55% in fiscal 2024 to Rs 23.5 lakh crore, led by strong inflows and MTM gains.
Quant Smallcap Mutual Fund hikes stake in 2 Mukesh Ambani stocks, pares stake in Adani Power
Launched in October 1996, the scheme manages assets worth Rs 17,349 crore as of March 31. The fund has invested 30.52% in largecap, and 65.20% in smallcap schemes. The scheme is managed by Ankit Pande, Vasav Sahgal, Sanjeev Sharma.
U-turn! 81% smallcap mutual funds underperform their benchmarks in 2024 so far
Around 81% of smallcap mutual funds have underperformed their benchmarks in 2024. Only five out of 27 schemes managed to outperform. The smallcap space faces challenges due to overvaluation and regulatory pressures, impacting investor decisions and fund performances.
Smallcap mutual fund investors await release of 2nd round of stress test results
The market regulator has asked the MF houses to publish the stress test results on their respective websites by the 15th of every month. The main purpose of the stress test was to make mid and smallcap investors aware of the risks associated with and the impact of volatility on the portfolio.
Mutual Fund stress tests offer valuable insights but can't be sole basis for investment decisions
Mutual funds disclose stress test results monthly for small and mid-cap schemes, estimating days to liquidate the portfolio's stocks. The tests exclude 20% illiquid securities and assess client concentration risk, AUM share, standard deviation, Portfolio Beta, and crisis impact on NAV. These disclosures fail to accurately depict stress scenarios, as they do not consider the changes in the market value of the securities in such scenarios.
Sebi’s stress test for mid- and small-cap mutual funds: Is liquidity more important than an MF’s mandate?
ET Wealth asks experts if liquidity should be prioritised at the cost of diluting a fund’s mandate.
Many mid- and small-cap mutual funds have not fared well in Sebi’s stress test; Find out if your MFs are safe
Are investors drawing the right conclusions? Are some funds illprepared for a doomsday scenario? Should you buy or exit a fund based on these test results? We attempt to filter out the noise around the much-hyped stress tests to find out whether investors need to be worried.
ETMarkets Smart Talk: Should you invest in MF based on stress test results? Kshitiz Mahajan explains
“Asset management companies conduct these stress tests fortnightly to assess the liquidity of small and midcap portfolios. During the test, they assess how quickly a fund manager can sell small and mid-company stocks if many investors request redemptions,” says Kshitiz Mahajan
Nippon smallcap mutual fund revises exit load and limits subscription
The fund house mentioned that with effect from October 1, 2012, exit load if charged to the scheme shall be credited to the scheme immediately net of goods and service tax, if any.
Number of days top 10 smallcap MFs will take to liquidate their portfolios
Mutual fund houses released their stress test reports on March 14 and 15 after Sebi’s directive to frame a policy to protect investors’ interests. Here are the details of the number of days top 10 smallcap schemes (based on assets under management) will take to liquidate their portfolios.
Stress tests indicate diverse risk profiles of MF schemes
While a midcap fund can redeem 50% of its portfolio in about a day, there are some small cap funds that could take as many as 60 days to redeem half their portfolio. Investors need to keep in mind other parameters like PE of the fund, corpus of the fund, volatility measurement and cash holding before taking a decision, planners said.
Sebi stress test: Top mutual funds reveal how long can it take to liquidate portfolios
The largest scheme in the smallcap category, Nippon India Small Cap will take 27 days to liquidate 50% portfolio, while Quantum Smallcap Fund, the smallest scheme in the smallcap category, will be able to liquidate 100% of its portfolio holdings in one day.
Mutual fund stress test spooking market, no scientific basis: Former Sebi official
Following Sebi's order, mutual funds started reporting the results of stress tests in small and midcap funds to see if they can manage huge redemptions in the event of a market downturn.
We may increase cash in smallcap, midcap funds: DSP Mutual Fund
DSP Mutual Fund, which released its stress report on Friday, highlighted that DSP Small Cap will be able to liquidate 25% of the portfolio in 16 days and 50% in 32 days. DSP Mid Cap Fund will be able to liquidate 25% of the portfolio in nine days and 50% portfolio in 17 days.
Smallest small cap mutual fund can liquidate 100% portfolio in 1 day: Stress test report
Quantum AMC said it maintains a minimum threshold liquidity of Rs 2 crore average liquidity over the last 12 months to be met for stocks to be part of the portfolio. This liquidity criteria aims at being able to enter or liquidate the portfolio stock within 66 trading days.
Sandeep Tandon on stress test, liquidity & why Quant takes concentrated bets
Tandon of Quant MF stresses risk-adjusted returns, liquidity analytics, and regulatory compliance. The fund maintains a focus on quality names and emphasizes data-driven decision-making. Retail maturity and strategic investment calls continue to shape their investment approach. Tandon also says: "If you believe that we are in a decisive bull run, then also remember that in the last many months, that easy phase of the bull run is over; we are in a decisive bull run, but it is a difficult phase. "
Not just stress test, mutual funds also release 9 other data points. Here is the full list
Mutual funds disclose stress test reports to show days to liquidate mid and small cap schemes. Sebi policy safeguards small investors, focusing on liquidity, concentration, and market volatility indicators for protection during downturns.
Explained: The 5Ws and 1H of Sebi mutual fund stress test results
The regulator is concerned that retail investors’ overexuberance has led to bubble formation in pockets of the market. The report card is an evaluation of liquidity and other risk ratio parameters in case the equity markets fall and investors rush to redeem their investments.
Sebi stress test: Largest smallcap MF scheme to take 27 days to liquidate 50% of portfolio
The number of days that will be required to liquidate 50% and 25% of the portfolio for Nippon India Growth Fund is seven and four days respectively.
Stress test reports: All things small and vulnerable
Sebi is urging mutual fund houses to release stress test reports and ensure equal treatment of investors during market volatility. Smallcap funds are drawing in nearly 15 times the money flowing into largecap funds, and the Nifty smallcap index has increased by 33% in the last six months. The rise in listing by small companies is a reflection of India's strong economic performance, but it comes with the risk of performance disappointment if GDP growth is not as robust as investors are projecting.
Stress Test Result: 22 days required to liquidate 50% portfolio of Quant Small Cap Fund
Quant Mutual Fund became the first mutual fund to disclose stress test results. According to the stress test result by the fund house, the trailing 12-month PE ratio for the midcap fund benchmark is nearing its trailing 12-month PE one year ago and two-year ago level. For the smallcap index, the trailing 12-month PE is above the one-year level and near to two-year level.
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