 "income, profit, money, invest, tax, bonds, mutual funds, dividend")
Many fund managers seem to be unsure about current market conditions. But they are getting regular inflows from systematic investments plans. The result: Large cash positions in their portfolios (see table). While this strategy has the potential to protect a fund if the markets correct, it can also backfire in certain circumstances.
Fund managers have understandably turned cautious in the wake of high valuations. Says Rajeev Thakkar, chief investment officer, PPFAS Mutual Fund, whose cash plus arbitrage position is at 16 per cent at present: "Currently there is strong momentum in the market,
