Key Points
NEW DELHI: Sparking a debate over whether it is the right time to stay fully invested or keep some powder dry amid a troublesome global macro environment, some of the top investors across the world have been sitting on mountains of cash...
Back home, the latest data shows that equity mutual funds are hoarding Rs 63,300 crore cash in their portfolios..
India's largest fund house SBI Mutual Fund, which handles equity investments worth Rs 4.5 lakh crore, was seen holding 10.2% cash in February, Motilal Oswal data shows.. The largest cash holding was that of PPFAS Mutual Fund, famed for its value investing strategy, which chose to keep 14% of its AUM in cash..
Rohan Mehta of Turtle Wealth Management is sitting on 25-35% cash at current levels, waiting for the right opportunity. In the last two weeks, the risk appetite of investors has plunged further following a crisis in regional banks in the United States and Credit Suisse in Europe...
Elevated valuations, tightening liquidity and its potential fallout on growth have been headwinds for equities for the past many months even as longer-term tailwinds of reviving corporate profitability and potential revival in manufacturing and investment cycle have provided a floor to the market, SBI MF said.. Fund managers expect the tug of war to continue till there is a decisive pullback on bond yields that in turn opens space on equity valuations...
