Cash and carry

Rising cash levels in equity funds indicate that the worst is not yet over on the Street

RA Chandroo

That sentiments on the Street have hit a nadir was evident when the markets ended CY11 with negative returns of 25%. But the nightmare is far from over if the rising cash levels of mutual funds are any indication. Over the past three months or so, open-ended diversified equity funds have raised their cash positions as slackening growth coupled with policy inertia took a toll on the markets. Nearly 19 diversified equity mutual funds have raised their cash position, as percentage of net assets, by 11-30%.

Funds with exposure to real estate and infrastructure segments, such as Tata Growing Economie


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