Summary:
AMFI's May 2026 stress test highlights the liquidity risks associated with midcap and smallcap mutual funds during periods of heavy redemptions. Among midcap funds, HDFC Mid Cap Fund would take the longest time to liquidate 50% of its portfolio at 34 days, while SBI Small Cap Fund leads the smallcap category with a 59-day liquidation timeline. The data shows that larger fund sizes and exposure to less liquid stocks significantly increase exit timelines. However, stress test results measure liquidity risk rather than fund quality or return potential. Investors should consider these figures alongside returns, risk profile, and investment horizon when selecting midcap and smallcap schemes.
Every two weeks, the Association of Mutual Funds in India (AMFI) puts out stress test results for midcap and smallcap mutual fund schemes, under a directive from SEBI. The numbers answer one focused question: if a large number of investors decided to pull their money out at the same time, how many days would it take the fund to sell off 25% or 50% of its holdings? The May 2026 figures, drawn from portfolios as of May 1, 2026, show a striking range across the industry; some funds can offload half their portfolio in under a day, while others would need close to two months to do the same.
Explore: AMFI May 2026: Industry Records ₹64,021 Crore Outflow
How the Stress Test Works
The calculation runs on a pro-rata basis. That means the fund sells across all its holdings in proportion, rather than starting with the easiest stocks to exit. Before the test begins, the bottom 20% of the portfolio ranked by liquidity is set aside. What remains is tested. The result is a number of days, and a lower number means the fund can raise cash faster when investors need it most.
Two things tend to push these timelines higher: the size of the fund and how liquid the underlying stocks are. Midcap and smallcap shares trade in far smaller volumes than large cap names. When a fund needs to exit a significant position in such stocks quickly, it either takes time to find buyers or has to accept a lower price. The bigger the fund, the larger those positions tend to be, and the harder they are to exit cleanly. More about Stress Testing.
Midcap Funds: Where the Timelines Stand
As per AMFI's May 2026 data, HDFC Mid Cap Fund has the longest liquidation timeline among all midcap schemes. Its AUM stands at ₹97,354.63 crore, making it the largest fund in the category, and it would need 34 days to liquidate 50% of its portfolio and 17 days for 25%. Kotak Midcap Fund (₹64,638.79 crore) follows at 26 days for 50% and 13 days for 25%.
| Scheme Name | AUM (₹ Crore) | 50% Portfolio (Days) | 25% Portfolio (Days) |
| HDFC Mid Cap Fund | 97,354.63 | 34 | 17 |
| Kotak Midcap Fund | 64,638.79 | 26 | 13 |
| SBI Midcap Fund | 23,416.76 | 17 | 9 |
| Motilal Oswal Midcap Fund | 36,460.10 | 12 | 6 |
| Nippon India Growth Mid Cap Fund | 47,418.58 | 9 | 5 |
SBI Midcap Fund (₹23,416.76 crore) would take 17 days for 50% and 9 days for 25%. Motilal Oswal Midcap Fund (₹36,460.10 crore) needs 12 days for 50% and 6 days for 25%. Nippon India Growth Mid Cap Fund, despite its sizeable AUM of ₹47,418.58 crore, manages to keep its timeline to 9 days for 50% and 5 days for 25%, a reasonably compact figure relative to its corpus.
Quant Mid Cap Fund deserves a separate mention. Its AUM is ₹8,105.11 crore, well below the large schemes, yet it requires 21 days for 50% liquidation and 11 days for 25%. This shows the concentrated and less liquid way its portfolio is built, rather than the size of the fund itself.
At the other end, several smaller funds including ITI Mid Cap Fund, JM Midcap Fund, Helios Mid Cap Fund, Bank of India Mid Cap Fund, LIC MF Mid Cap Fund, Taurus Mid Cap Fund, TrustMF Mid Cap Fund, and Union Midcap Fund, all with AUMs below ₹1,500 crore report timelines of just 1 day for both metrics.
Smallcap Funds: Wider Gaps, Longer Waits
The smallcap segment shows more stretched timelines overall, which is consistent with how smallcap stocks trade.
| Scheme Name | AUM (₹ Crore) | 50% Portfolio (Days) | 25% Portfolio (Days) |
| SBI Small Cap Fund | 37,394.66 | 59 | 30 |
| Quant Small Cap Fund | 31,763.33 | 54 | 27 |
| HDFC Small Cap Fund | 38,811.42 | 54 | 27 |
| Tata Small Cap Fund | 11,646.11 | 38 | 19 |
| DSP Small Cap Fund | 18,359.73 | 37 | 19 |
SBI Small Cap Fund tops the list at 59 days for 50% liquidation and 30 days for 25%, with an AUM of ₹37,394.66 crore. Quant Small Cap Fund (₹31,763.33 crore) and HDFC Small Cap Fund (₹38,811.42 crore) both come in at 54 days for 50% and 27 days for 25%. Tata Small Cap Fund (₹11,646.11 crore) requires 38 days for 50% and 19 days for 25%, and DSP Small Cap Fund (₹18,359.73 crore) sits at 37 days and 19 days respectively.
Nippon India Small Cap Fund, the largest scheme in the category at ₹74,608.07 crore, manages 29 days for 50% and 15 days for 25%, a relatively controlled timeline given the sheer size of the fund.
At the more liquid end, smaller schemes including Baroda BNP Paribas Small Cap Fund, ITI Small Cap Fund, LIC MF Small Cap Fund, PGIM India Small Cap Fund, Helios Small Cap Fund, TrustMF Small Cap Fund, Union Small Cap Fund, and JM Small Cap Fund all report timelines of 1–2 days across both parameters. Samco Small Cap Fund, with an AUM of just ₹151.37 crore, clocks in at 0.10 days for 50% and 0.05 days for 25%, effectively immediate.
How to Read These Numbers
A longer liquidation timeline is not a verdict on how well a fund is managed. Large funds holding concentrated smallcap positions face this challenge structurally, smaller trading volumes in the underlying stocks mean it simply takes more time to sell without pushing prices down. The stress test measures liquidity risk, not investment quality or likely returns.
Where the data becomes relevant for investors is in matching fund choice to personal circumstances. Someone who may need their money back within a defined timeframe, or who would be unsettled by delays during a market correction, should factor in a fund's liquidity profile alongside its historical returns and expense ratio. As per AMFI, this data is refreshed every fortnight, so it reflects current portfolio conditions rather than outdated figures.
Conclusion
The May 2026 AMFI stress test data lays out a consistent picture across both categories — corpus size and smallcap concentration are the two main factors that stretch liquidation timelines. In the midcap segment, HDFC Mid Cap Fund leads at 34 days for 50% liquidation, with quant Mid Cap Fund standing apart as a smaller fund that still carries a 21-day timeline due to its portfolio construction. In the smallcap space, SBI Small Cap Fund at 59 days, quant Small Cap Fund and HDFC Small Cap Fund at 54 days apiece hold the three longest timelines in the category. Smaller funds at both ends of the size spectrum largely report 1–5 days. Investors can check the latest fortnightly disclosures directly on AMFI's official website.
