Mutual Funds Warning: Stress Test Results | Your small cap funds safe? | should i Exit small cap?

Stress Testing Mutual Funds: Are Indian Investors Prepared for an Uncertain Market?
Stress Testing Mutual Funds: Are they a safe investment option in the Indian market?
Small Caps Under Fire: Fund Safety Check
STRESS TEST MUTUAL FUNDS: Breaking Down the Jargon from quant Mutual Fund:
Midcap & Small Cap Stress Test Revealed
Are Your Mutual Funds Secure? Find Out Now!
quant Mutual Fund is fundamentally in the business of risk management and we believe that returns are a by-product. Our set of advanced risk management tools help us manage risks, both known and unknown. Our Predictive Analytics tools clearly endorse that there are no classic signs of euphoria in Indian equities at this point of time. However, hype does get built in certain sectors or pockets and we mitigate these perceived risks by stock and sector rotation via quant’s ‘Money Flow Analytics.’
#stresstest #smallcapfunds #midcapfunds #mutualfundstresstest

While there clearly are some pockets of high valuation and even frenzy in certain segments of our market, we do not perceive bigger risks in the mid and small cap space and we continue to invest across market segments as per our risk-mitigating VLRT investment framework and our “Active, Absolute & Unconstrained” investment philosophy. The trailing twelve months price to earnings (P/E) ratio for the benchmark Mid Cap 150 index is only marginally above its 1 year and 2 year ago levels, and although the benchmark Small Cap 250 index is trading above its 1 year ago level, it is trading close to its 2 year ago levels.

quant’s Predictive Analytics is endorsing that risk appetite is rising for Indian equities with improving liquidity and rising systematic inflows into equities – SIP inflow in February 2024 was 5.5% higher sequentially, the figure being INR 19,876cr, higher by 45% over this month last year.

quant’s ‘Perception Analytics’ is endorsing a positive outlook for India both in absolute and relative terms – relative to China, Emerging Markets and Developed Markets, including the U.S.


The whole objective of this stress testing exercise of AMFI on behalf of the regulator is to make the average mutual fund investor aware of the risks and impact of market volatility on the liquidity of one’s equity portfolio, based on which one can take appropriate decisions to rebalance and redirect one’s liquidity and savings, as one deems fit.

Following are our results of the Stress Test & Liquidity Analysis, as on 29th February, 2024, as desired by the market regulator, along with additional risk-adjusted measures for our Mid Cap and Small Cap Funds (Detailed disclosure is provided in the attached PDF).

Liquidity Analysis: As per the methodology defined by AMFI in consultation with SEBI, the time taken for 50% portfolio liquidation is 6 days for the quant Mid Cap Fund and 22 days for the quant Small Cap Fund. Time taken for 25% portfolio liquidation is 3 days for the quant Mid Cap Fund and 11 days for the quant Small Cap Fund.
Volatility Analysis: Annualized standard deviation is 16.59% for the quant Mid Cap Fund vs. 14.67% for the benchmark and 19.73% for the quant Small Cap Fund vs. 17.57% for the benchmark. The Beta (NAV-based) is 0.96 for the quant Mid Cap Fund and 1.03 for the quant Small Cap Fund. The portfolio betas for all the quant Mutual Fund

schemes are mentioned in our monthly Factsheets. Additionally, the annualized downside deviation is 7.54% for the quant Mid Cap Fund and 9.60% for the quant Small Cap Fund. The annualized upside deviation is 16.66% for the quant Mid Cap Fund and 19.51% for the quant Small Cap Fund.

P/E Multiple: The portfolio trailing twelve month P/E ratio is 24.35 for the quant Mid Cap Fund and 21.52 for the quant Small Cap Fund vs. 26.96 and 28.85 for the respective benchmarks. Our portfolio turnover ratio is 3.65 for the quant Mid Cap Fund and 1.69 for the quant Small Cap Fund.

Additional Risk-adjusted Measures: In all the schemes of quant Mutual Fund, various risk-adjusted measures as indicated by the Sharpe ratio, Sortino ratio and Jensen’s Alpha indicate significant outperformance compared to the industry average. The Sharpe ratio is 1.93 and 1.95 for the quant Mid Cap and quant Small Cap Funds respectively, vs. 1.37 and 1.67 industry average (Source: ACE MF). The Sortino ratio is 4.24 and 4.02 for the quant Mid Cap and quant Small Cap Funds respectively, vs. 2.77 and 3.48 industry average (Source: ACE MF). Jensen’s Alpha measures read as 10.58% and 12.29% for the quant Mid Cap and quant Small Cap Funds respectively, vs. -0.91% and 4.57% industry average (Source: ACE MF).

Тэги:

#mutual_fund_stress_test #mutual_fund_stress_test_tamil #mutual_fund_stress_test_2024 #small_cap_mutual_funds #mutual_funds_stress_tests_results #sebi_new_stress_test_of_mutual_funds #what_is_stress_test_of_mutual_funds #mutual_fund #mutual_fund_tamil #stock_market_fear #stress_test_in_mutual_fund #sebi_orders_on_mutual_funds #smallcap_funds #stock_market #mutual_fund_stress_tests #sebi_mutual_fund_stress_test_results #quant_smallcap #mutual_fund_warning #stress_test_result

Скачать видео