Aditya Birla Sun Life Mutual Fund unveiled the outcomes of its stress tests on Thursday (March 14), aligning with a directive from the Association of Mutual Funds in India (AMFI).
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The AMFI has mandated its members to regularly disclose stress test results every 15 days, in compliance with a recent directive from the Securities and Exchange Board of India (SEBI).
Aditya Birla Sun Life Midcap Fund and Aditya Birla Sun Life Small Cap Fund have ₹10,363 crore worth of assets under management (AUM). These are the most important things to know:
1. Top 10 investors hold 4.14% of the midcap scheme and 2.52% of the smallcap scheme.
2. If needed, Aditya Birla Sun Life Mutual Fund will take 4 days to sell 50% of its midcap portfolio and 10 days to sell half of its smallcap portfolio. This shows how liquid are the stocks that the funds have invested in.
3. Both the funds have a beta (volatility) of 0.87 and 0.84. The beta of less than one implies the portfolio is less sensitive to market volatility.
4. Both funds have a lesser annual standard deviation compared to the benchmark. Standard deviation measures how widely the returns from a stock in the portfolio from one time period to another. The higher the standard deviation, the less predictable the returns are.
5. The portfolio turnover rate for the midcap fund is 0.23 and the same is 0.42 for the smallcap fund.
These stress tests aim to assess how quickly fund managers can liquidate their portfolios in the event of investors seeking redemptions amid challenging market conditions.
First Published: Mar 14, 2024 10:19 PM IST
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