AMFI’s small-cap fund stress test data for July 2026 reveals an interesting pattern: Schemes having a larger allocation to midcap stocks tend to fare better on liquidity stress tests, meaning they can liquidate their portfolios faster in a hypothetical redemption scenario.
The stress test data by the Association of Mutual Funds in India (AMFI) measures how many days a fund would need to liquidate 50% and 25% of its portfolio. The July 2026 data covers 28 small-cap funds with combined assets under management of approximately ₹4.5 lakh crore as of July 1, 2026.
Insights from the July stress test data
At one end of the spectrum is a scheme like Samco Small Cap Fund. With a midcap allocation of 22.41%, this fund could liquidate 50% of its portfolio in just 0.06 days and 25% in 0.03 days.
ITI Small Cap Fund, with 24.51% in midcaps, the highest among all funds in the list, can liquidate both the 50% and 25% of its assets in one day.
TRUSTMF Small Cap Fund, with 21.9% in midcaps, also scored 1 day on both tests. PGIM India Small Cap Fund, with 19.97% in midcaps, scored 1 day on both metrics.
At the other end there are scheme like quant Small Cap Fund. With only 8.81% in midcaps and 65.06% in small caps, the scheme needed 48 days to liquidate 50% of its portfolio and 24 days for 25%. Similarly, SBI Small Cap Fund, with just 5.06% in midcaps and 83.87% in small caps, required 46 days for 50% liquidation and 23 days for 25%.
Tata Small Cap Fund, with 8.09% in midcaps and 85.08% in small caps, took 37 days and 19 days respectively in the stress test. The DSP Small Cap Fund, with 5.76% in midcaps and 81.6% in small caps, needed 31 days for 50% liquidation and 15 days for 25%.
The correlation is visible across the middle of the pack as well. Edelweiss Small Cap Fund, with 23.17% in midcaps, scored five days for 50% liquidation. HSBC Small Cap Fund, with 22.19% in midcaps, scored nine days. Mahindra Manulife Small Cap Fund, with 20.99% in midcaps, scored five days. UTI Small Cap Fund, with 18.49% in midcaps, scored four days.
In contrast, funds with low midcap exposure and high small-cap take longer durations for liquidations under stress. ICICI Prudential Smallcap Fund, with just 2.89% in midcaps and 88.5% in small caps, needed 12 days for 50% liquidation. Franklin India Small Cap Fund, with 5.2% in midcaps and 81.4% in small caps, also took 12 days.
AUM size compounds liquidity challenge
The data also reveals that AUM size compounds the liquidity challenge. Among funds with over ₹30,000 crore in AUM, HDFC Small Cap Fund (₹41,677.76 crore) needed 44 days, SBI (₹39,942.33 crore) needed 46 days, and quant (₹34,065.10 crore) needed 48 days for liquidating 50% of portfolio.
Bandhan Small Cap Fund, with ₹31,157.09 crore, scored 21 days. Nippon India Small Cap Fund, the largest in the category with ₹78,943.52 crore, needed 26 days, but it also carried 14.5% in large caps and 13.22% in midcaps, which helped moderate its liquidation timeline.
On valuations, the data shows that most small-cap funds are trading at premiums to their benchmarks. Bajaj Finserv Small Cap Fund had the highest portfolio trailing 12-month PE at 49.2, against a benchmark PE of 35.68. Bandhan Small Cap Fund had the lowest portfolio PE at 19.5, well below its benchmark of 35.68.
AMFI July 2026 stress test data
| Scheme Name | AUM (₹ Cr) | 50% Portfolio (Days) | 25% Portfolio (Days) | Large Cap (%) | Mid Cap (%) | Small Cap (%) | Cash (%) |
|---|---|---|---|---|---|---|---|
| Abakkus Small Cap Fund | 2,129.42 | 2.00 | 1.00 | 5.84 | 3.25 | 78.91 | 12.00 |
| Aditya Birla Sun Life Small Cap Fund | 5,863.78 | 4.00 | 2.00 | 2.04 | 12.73 | 80.52 | 4.71 |
| Axis Small Cap Fund | 30,086.99 | 15.00 | 7.00 | 8.47 | 10.50 | 73.53 | 7.50 |
| Bajaj Finserv Small Cap Fund | 2,366.08 | 3.00 | 2.00 | 0.05 | 10.80 | 87.52 | 1.63 |
| BANDHAN Small Cap Fund | 31,157.09 | 21.00 | 11.00 | 6.33 | 12.30 | 71.46 | 9.92 |
| BANK OF INDIA SMALL CAP FUND | 2,834.29 | 3.00 | 2.00 | 2.80 | 8.11 | 77.13 | 11.96 |
| Baroda BNP Paribas Small Cap Fund | 1,286.94 | 1.00 | 1.00 | 6.23 | 14.39 | 73.27 | 6.10 |
| Canara Robeco Small Cap Fund | 14,223.79 | 10.00 | 5.00 | 9.30 | 14.77 | 72.96 | 2.97 |
| DSP Small Cap Fund | 20,089.50 | 31.00 | 15.00 | 0.00 | 5.76 | 81.60 | 12.64 |
| Edelweiss Small Cap Fund | 6,824.59 | 5.00 | 2.00 | 5.70 | 23.17 | 67.96 | 3.17 |
| Franklin India Small Cap Fund | 14,460.20 | 12.00 | 6.00 | 9.10 | 5.20 | 81.40 | 4.30 |
| Groww Small Cap Fund | 578.52 | 0.64 | 0.16 | 0.00 | 7.74 | 69.23 | 23.03 |
| HDFC Small Cap Fund | 41,677.76 | 44.00 | 22.00 | 6.77 | 10.76 | 72.50 | 9.96 |
| Helios Small Cap Fund | 1,459.89 | 1.00 | 1.00 | 3.88 | 17.95 | 77.24 | 0.93 |
| HSBC Small Cap Fund | 17,781.69 | 9.00 | 5.00 | 2.90 | 22.19 | 72.71 | 2.20 |
| ICICI Prudential Smallcap Fund | 9,534.50 | 12.00 | 6.00 | 5.85 | 2.89 | 88.50 | 2.75 |
| Invesco India Smallcap Fund | 14,521.81 | 14.00 | 7.00 | 13.69 | 14.96 | 65.49 | 5.86 |
| ITI Small Cap Fund | 3,450.65 | 1.00 | 1.00 | 8.91 | 24.51 | 64.34 | 2.24 |
| JM Small Cap Fund | 869.01 | 1.00 | 1.00 | 0.00 | 3.32 | 94.26 | 2.42 |
| Kotak Small Cap Fund | 18,908.54 | 24.00 | 12.00 | 7.21 | 19.06 | 73.49 | 0.24 |
| LIC MF Small Cap Fund | 758.14 | 2.00 | 1.00 | 1.83 | 6.19 | 88.10 | 3.89 |
| Mahindra Manulife Small Cap Fund | 5,086.65 | 5.00 | 3.00 | 9.70 | 20.99 | 64.21 | 5.10 |
| Mirae Asset Small Cap Fund | 5,229.22 | 5.00 | 3.00 | 6.33 | 16.28 | 76.94 | 0.45 |
| Motilal Oswal Small Cap Fund | 7,611.55 | 9.00 | 5.00 | 1.00 | 9.00 | 87.00 | 3.00 |
| Nippon India Small Cap Fund | 78,943.52 | 26.00 | 13.00 | 14.50 | 13.22 | 69.47 | 2.81 |
| PGIM India Small Cap Fund | 1,673.53 | 1.00 | 1.00 | 8.45 | 19.97 | 68.83 | 2.74 |
| quant Small Cap Fund | 34,065.10 | 48.00 | 24.00 | 20.62 | 8.81 | 65.06 | 6.17 |
| QUANTUM SMALL CAP FUND | 254.39 | 1.00 | 1.00 | 9.64 | 4.22 | 80.09 | 6.05 |
| Samco Small Cap Fund | 170.58 | 0.06 | 0.03 | 5.40 | 22.41 | 70.68 | 1.51 |
| SBI Small Cap Fund | 39,942.33 | 46.00 | 23.00 | 1.02 | 5.06 | 83.87 | 10.05 |
| Sundaram Small Cap Fund | 3,924.56 | 5.00 | 3.00 | 9.33 | 4.84 | 80.64 | 5.19 |
| TATA SMALL CAP FUND | 12,690.55 | 37.00 | 19.00 | 0.00 | 8.09 | 85.08 | 6.83 |
| THE WEALTH COMPANY SMALL CAP FUND | 106.76 | 1.00 | 1.00 | 15.01 | 9.54 | 71.63 | 3.81 |
| TRUSTMF Small Cap Fund | 2,871.41 | 1.00 | 1.00 | 2.40 | 21.90 | 71.89 | 3.81 |
| Union Small Cap Fund | 2,404.78 | 1.00 | 1.00 | 4.40 | 16.43 | 77.84 | 1.33 |
| UTI Small Cap Fund | 5,261.79 | 4.00 | 2.00 | 0.00 | 18.49 | 81.51 | 0.00 |
Takeaway for investors
When evaluating a small-cap fund, the midcap allocation could be a useful indicator of how well the fund can handle heavy redemptions during stress. AMFI’s July data shows that funds that keep a fifth or more of their corpus in midcaps appear better positioned to meet the stress test, while those parked almost entirely in small-cap stocks could take longer to liquidate, more so when their AUM is large.
Disclaimer: The information contained in this article is for informational purposes only and does not represent investment advice from Upstox. Investment decisions should be made based on independent research or consultation with a registered financial advisor. Past performance is not indicative of future results.
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