GAGA Share Market News

[hfe_template id='11223'] [ad_1] Small and midcap funds have been in the news in recent months as the capital market regulator made it mandatory for all the asset management companies (AMCs) to disclose portfolio stress test results for their small and midcap funds. Such stress tests are supposed to help assess funds’ ability to meet potential redemption pressure, especially from large investors in a stressed market environment. The disclosures are aimed at making investors aware of the liquidity risks, especially given the surge in assets managed by such funds at a time when valuations of small and mid cap stocks seemed expensive. While many AMCs have been conducting such portfolio stress tests regularly for their internal risk management, they have now started disclosing the results of these stress tests in line with the regulatory requirement. This stress test data is expected to help investors understand the liquidity profile and other risks in the small and midcap f...