Question

Recently, to address the growing froth in small-cap funds, SEBI mandated a specific test to ensure these funds can manage sudden large redemptions. What is this test called?

Refer to the following information to answer the next 4 questions (Q27 to Q30) Mutual funds are investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. This allows individual investors access to a broader range of assets than they might be able to manage on their own. Investors seeking to optimize their financial strategies often consider different types of investment plans that suit various financial goals and life stages. In mutual funds SWP, SIP, and STP are three such strategies that enable investors to manage their finances with flexibility and precision. Each of these plans serves a unique purpose, ensuring that investors can tailor their investment approaches to fit their specific financial needs and future aspirations.
A Volatility Test
B Asset Test
C Redemption Test
D Stress Test
E Capital Adequacy Test
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