Mutual Funds as provided in their KIM ( Key Information Memorandum ) that they can hold cash upto certain level as a point of time and remain invested of the rest of the amount.
As in present scenario due to Covid 19 - Corona Pandemic the equity market have fallen around 30% from the recent high levels which gives a good opportunity for the funds which are in cash to go for investment in their choice of stocks and in case pressure for redemption is seen then they need not sell their stocks to pay those who are exiting the funds.
High cash holding can be a double edged sword as if market starts to rally relentlessly then these funds miss the bus of the rally and in turn ten to give subdued return that the aggressive funds.
We have given a list of top 15 Funds in percentage of their cash holdings with our investment rating and grade return, smart investor can look few of these funds to invest in and reap the benefit of fallen down equity markets.
As in present scenario due to Covid 19 - Corona Pandemic the equity market have fallen around 30% from the recent high levels which gives a good opportunity for the funds which are in cash to go for investment in their choice of stocks and in case pressure for redemption is seen then they need not sell their stocks to pay those who are exiting the funds.
High cash holding can be a double edged sword as if market starts to rally relentlessly then these funds miss the bus of the rally and in turn ten to give subdued return that the aggressive funds.
We have given a list of top 15 Funds in percentage of their cash holdings with our investment rating and grade return, smart investor can look few of these funds to invest in and reap the benefit of fallen down equity markets.
| Fund | As % of Assets | Fund Type | Our Investment Ratings (10) | Return Grade |
| ICICI Prudential Focused Equity | 29 | Multicap | 6 | Medium |
| SBI Contra | 26 | Multicap | 7 | Medium |
| Indiabulls Value | 22 | Multicap | 8 | High |
| HDFC Retirement Saving Equity | 20 | Multicap | 5 | Low |
| JM Large Cap | 19 | Tax Saver | 8 | High |
| Parag Parikh Tax Saver | 19 | Tax Saver | 7 | Medium |
| Axis Small Cap | 18 | Small Cap | 7 | High |
| Axis Multi Cap | 17 | Multicap | 7 | Medium |
| Axis Blue Chip | 16 | Large Cap | 6 | Medium |
| Axis Mid Cap | 16 | Mid Cap | 7 | High |
| ICICI Prudential Retirement | 15 | Multicap | 5 | Low |
| Indiabulls Tax Savings | 14 | Tax Saver | 6 | Medium |
| Tata Small Cap | 13 | Small Cap | 7 | Medium |
| HDFC Small Cap | 13 | Small Cap | 5 | Low |
| Shriram Long Term Equity | 12 | Tax Saver | 5 | Low |
Kindly share your views / query in the comment section , we shall be happy to reply to your queries.
1 comment:
Hey, thanks for the information. your posts are informative and useful.
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