Mfs Play It Safe, Build Up Cash Kitty

Mutual funds (MFs) increased their cash levels for the third month in a row as they remained sellers in the market during May 2002. Cash levels by May-end increased to 6.4 per cent of the corpus (Rs 538 crore) from 5.6 per cent (Rs 492 crore).

A Merrill Lynch report on mutual funds for May said, even though the funds were net sellers in oil stocks, they continued to participate in some privatisation players such as Hindustan Petroleum. Funds were net sellers in some index heavyweights in information technology and FMCG sectors.

The study said,