A strategy by funds to maintain cash in hand amid an uncertain environment in equities

MUMBAI: In view of high volatility in global equity markets and uncertainty in the global macroeconomic environment, some of the world's largest investors are currently strategizing to keep more cash in hand.
Berkshire Hathaway, led by Warren Buffett, disclosed last month that it has approximately $130 billion in cash at the end of 2022.
Talking about the home front, at the end of February, the country's equity mutual funds had Rs 63,300 crore in their portfolios, according to the figures received. The figures also reveal that five per cent of the fund's total assets under management are in cash.
India's largest fund house SBI Mutual Fund had 10.20 percent of its assets under management as cash in hand. The fund undertakes equity investments of approximately Rs 4.50 lakh crore. Among the country's top twenty mutual funds, the average cash holding stood at a two-year high of 6.20 percent in February. Fund houses are currently waiting for a real opportunity to increase equity investments, an analyst said.
As a result of the banking crisis in America, the interest of investors to invest has decreased in the last two weeks. Funds are anticipating an excellent buying opportunity in the market in the event of a Lehman-like crisis.
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