Majority of equity schemes pare cash positions even as markets soar

According to experts, schemes that were sitting on a lot of cash deployed it after the market crash in March and April

Topics
Equity schemes | Valuations | Markets

Ashley Coutinho  |  Mumbai 

Few equity schemes have resorted to building a cash buffer despite rich valuations and the steep run-up in equities in the last two months that took the benchmark indices to record highs. Two-thirds of the 265 equity schemes that were considered have decreased their cash positions in the last one year, data from Value Research shows.

Of this, 29 have decreased their cash position by more than 5 percentage points and 11 by over 10 percentage points. Thirty-one schemes had cash levels in excess of 5 per cent as of December 31, 2020 compared with 65 a year ago. According to experts, ...

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First Published: Tue, January 26 2021. 16:42 IST
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