 "Equity MFs' cash component hits 6.5% as shares hover at all time high")
With strong domestic inflows continuing as Indian shares hover at all-time highs, equity fund managers are increasingly taking the precaution of keeping a higher amount of cash.
Recent data shows the cash component against total equity assets under management (AUM) a little over 6.5 per cent, a multi-year high. A year before, the cash position did not exceed four percentage points.
Unreasonably high valuations in the mid-cap and small-cap space are making fund managers wary and they've been cashing out from those positions. Since November, when demonetisation was announced, there's been a problem in deploying these, resulting in a continuous
