Smallcap funds: Liquid gold in market maelstrom
Smallcap funds have managed to improve their liquidity situation in March. Over a dozen smallcap funds, which released the second round of stress test reports until Saturday, showed that they would need an average of 13.5 days to liquidate 50 per cent of their portfolio, compared to 14.3 days in February. The improvements come amid a correction in smallcap stocks and outflows from these schemes. During the same period, cash holdings declined marginally from 5.9 per cent to 5.5 per cent. The decline in cash levels is the highest in the case of