Is High Cash Allocation in Equity Funds Good or Bad: Guide by Top SIP Investor in Pune
High cash allocation in equity mutual funds is not a negative sign for long-term investors. Funds that hold higher cash often show lower volatility and smoother returns over time. However, they may underperform briefly during strong market rallies when cash remains uninvested.
A mutual fund broker in Pune usually explains that this difference often comes from how much cash a fund is...