Quant MF says small cap fund will take 22 days to clear 50% | Top Vip News

Quant Mutual Fund has announced that the time required for the liquidation of 50 per cent of the portfolio is six days for its Quant Mid Cap Fund and 22 days for the Quant Small Cap Fund. Furthermore, the time required for liquidation of the 25 percent portfolio is three days for the Quant Mid Cap Fund and 11 days for the Quant Small Cap Fund.

Heeding Securities and Exchange Board of India (SEBI) concerns over frothing in the mid-cap and small-cap segments, the Association of Mutual Funds of India (AMFI) had last month told funds mutual funds to carry out stress tests and publish the result on their own and AMFI websites, once every 15 days starting on March 15.

Quant Mutual Fund is among the first fund houses to publish the data.

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Fund houses were also supposed to publish granular details about the volatility and valuation details of their portfolio.

Small and medium-sized funds have seen large capital inflows, raising concerns among authorities about how they would hold up in the event of a sharp market sell-off.

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Quant Small Cap Fund is among the top 10 schemes in the category with assets under management (AUM) of Rs 17,193 crore as of February-end. Quant Mid Cap Fund had an AUM of Rs 5,422 crore.

According to the fund house, although it is evident that there are some pockets of high valuation and even frenzy in certain segments of our market, it does not perceive greater risks in the medium and small capitalization spaces.

“As we have been emphasizing, without any ambiguity, Quant MF maintains its constructive long-term view on the mid-cap and small-cap space and believes its dynamic money management style is best suited to navigate Indian equities,” the company said. fund house. saying.

Quant Mutual Fund added: “Our predictive analytics tools clearly support that there are no classic signs of euphoria in Indian stocks at the moment. However, there is excitement building in certain sectors or pockets and we mitigate these perceived risks by stock and sector rotation. via quant’s ‘Money Flow Analytics’.”

Also read | Jefferies calls small- and mid-cap sell-off a healthy correction, not a major crisis

According to the fund house, the trailing twelve-month price-to-earnings (P/E) ratio of the benchmark Mid Cap 150 index is only marginally above its levels one and two years ago, and even higher than the benchmark index. Small Cap 250 is trading above its level from one year ago, it is trading near its levels from two years ago.

Granular data

The objective of AMFI stress testing exercise is to make the average mutual fund investor aware of the risks and impact of market volatility on the liquidity of his equity portfolio, based on which he can take appropriate decisions to rebalance and redirect your liquidity and savings. , as one sees fit.

In terms of market capitalization and concentration of top 10 investors, the stress test conducted by Quant Mutual Fund revealed that large, mid and small cap stock and cash holdings are 27.36 percent, 69.57 percent cent, 0 percent and 3.07 percent respectively. , in the background Quant Mid Cap.

The holdings of large-cap, mid-cap, small-cap stocks and cash in the Quant Small Cap Fund are 28.36 percent, 0.24 percent, 65.87 percent and 5.53 percent, respectively.

Additionally, the top 10 investors own 2.99 percent of the Quant Mid Cap fund and 2.10 percent of the Quant Small Cap fund.

When it comes to volatility analysis, the annualized standard deviation is 16.59 percent for the Quant Mid Cap Fund versus 14.67 percent for the benchmark and 19.73 percent for the Quant Small Cap Fund compared to 17.57 percent of the benchmark index.

In mutual funds, standard deviation tells investors the extent to which the mutual fund portfolio’s return deviates from the expected return, based on the fund’s historical performance.

The Beta (based on NAV) is 0.96 for the Quant Mid Cap Fund and 1.03 for the Quant Small Cap Fund.

Beta denotes the sensitivity of a mutual fund scheme to market movements. A beta less than 1 denotes lower volatility and greater than 1 denotes higher volatility compared to the benchmark index.