Stress Test: DSP needs 16 days to exit 25% in SmallCap MF; Edelweiss 3 days

Edelweiss Mutual Fund on Thursday disclosed its first stress test result in order to comply with recent Sebi directive.

Edelweiss Mutual Fund on Thursday disclosed its first stress test result in order to comply with recent Association of Mutual Funds in India (AMFI) regulation post Sebi's directive.

The AMFI has asked all its members to disclose stress test results every 15 days, starting from March 15, 2024. Sebi had issued a 15-day disclosure directive to ascertain how soon a fund manager shall be able to liquidate holdings, if investors were in a hurry to exit positions owing to adverse market conditions.

What is Mutual Fund (MF) stress Test?

In simple terms, stress test involves calculation of the number of