Your mutual fund might be holding too much cash1 min read 22 Sep 2020, 04:44 PM IST
Equity funds usually have low cash levels as these schemes are vehicles meant for long-term investments
Every mutual fund scheme comes with a mandate to invest in certain types of securities. And at all times, as well. But every mutual fund scheme is allowed a tiny part of its portfolio in cash. This is allowed in order to meet redemptions or any "buy" opportunities that the fund may come across on any day.
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