Although the level of liquidity is not available until July, the capital, experts say the funds are on the rise. According to fund managers spoke to Business Standard, in cash, in some cases, exposure can reach 10-12 percent.
Reference Sensex of the Bombay Stock Exchange since its peak in early November last year, lost nearly 20 percent of its value so far. Equity programs in the program rather than negative returns of up to 25 percent in the current calendar year.
Last year in September, when the rally in the Indian market, fund managers decided to keep a little 'money and use a larger piece of money. The current liquidity of all business operators are building up again. The value of the fund tracker research, says most of the houses of the upper end increased their levels of cash during the quarter ended June 30, compared to September last year.
Dhruva Raj Chatterji, senior research analyst at Morningstar in Italy, says: "in times of crisis, the bottom players tend to increase their exposure in cash to protect against further downward movement, and to meet the redemption pressure." Kaushik agrees with the Dani, the capital of the Mutual Fund head Peerless. "The markets are volatile, and it makes sense to be in cash than having everything."
In July, the fund industry saw a net outflow of Rs 729 crore in systems of pure equity, the second highest in the current year. All of this cash flow is again moved towards the negative zone, where the outflow of Rs 239 crore.
Chief Investment Officer (CIO), the volatility huge problem of quotas and the market's direction is uncertain. "In such a situation you do not want to get caught, and it makes sense does not consent to the use of cash," says the CIO of medium-sized fund house, who declined to be named.
According N Sethuraman, CIO Daiwa mutual funds, "Times are uncertain in the world and prefer to be on defense. Areas not related to world events and non-rate sensitive, such as consumer goods (FMCG) and health care is a better game. "