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Ramesh Kabra, head, Product Development at Taurus Mutual Fund, addresses the important issues and concerns ranging from volatility of the market to safer investment destinations.
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Awaiting the right opportunity to deploy their funds into the equity market, the mutual fund industry is stting on a huge cash pile of Rs 20,109 crore, even as Foreign Institutional Investors are pouring funds into equities.
According to the Mutual Fund Monthly Performance Report by Reliance Money, the fund houses were sitting on a cash pile of Rs 15,074.27 crore (Rs 150.74 billion) at May-end against that of Rs 20,108.92 crore (Rs 201.08 billion) at the end of previous month. Fund managers said that availability of stocks at cheap valuations renewed their interest in the secondary market.
Funds like Taurus Starshare capitalise on market conditions by holding concentrated portfolios and taking on higher risk, but this only reveal a part of the true picture.