Home >Mutual Funds >News >Is your MF holding too much cash?
 (iStock)
(iStock)

Is your MF holding too much cash?

  • Usually, equity funds hold cash 1-5% of a fund’s corpus in cash, though some funds can hold as high as 7-10%.
  • Here’s a list of funds with the highest cash levels

Every mutual fund scheme comes with a mandate to invest in certain type of securities, but it is allowed to have a small part of its portfolio in cash to meet redemptions or make use of any ‘buy’ opportunities. Usually, equity funds hold cash 1-5% of a fund’s corpus in cash, though some funds can hold as high as 7-10%. Some funds have higher levels because their mandate allows them to, if—as per their analysis—good stocks are not available at desirable valuations. Whether or not a fund ought to hold cash is a subjective call.

Here’s a list of funds with the highest cash levels.

View Full Image
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePapermint is now on Telegram. Join mint channel in your Telegram and stay updated

Close
×
My Reads Redeem a Gift Card Logout