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For Mutual Funds, How Much Cash Is Too Much ?

TedTed
in Fund Discussions
FYI: (Click On Article title At Top Of Google Search)

Managing a mutual fund’s cash balance is a tricky balancing act.
Hold too much cash and short-term returns can lag behind peer funds, especially in bull markets. Operate with too small a buffer, however, and long-term results can suffer. With too few dollars on hand, a portfolio manager can be forced to sell promising holdings during any market downswing to pay those who want to jump ship.
Nowadays, there are some estimable value funds with very high cash levels, in large part because they fear that stocks are too expensive.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=for+mutual+funds+how+much+cash+barron's&oq=for+mutual+funds+how+much+cash+barron's&gs_l=hp.3...1510.15042.0.15408.39.36.0.3.3.0.207.2261.35j0j1.36.0....0...1c.1.58.hp..8.31.1866.WJhUeOtNyhk

Comments

  • Tampabay
    +10%, I don't pay commissions on non earning funds, Unless the performance is there, better have a good reason ,maybe Yacktman, I know they will make my numbers, so I let them slide
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