Sundaram BNP Paribas Select Midcap sitting on large cash?
Sundaram BNP Paribas Select Midcap is undoubtedly one of the best mutual fund scheme looking at its past performance. After good advertising campaigns, it seems the fund got more number of applications for purchase of its units from its investors. With downpour of money on one side and the huge volatility on the other, it seems Sundaram BNP Paribas is thinking and probably waiting for some good opportunities in the midcap space. For the time being though, the scheme is sitting on a large cash base.
As per the latest issue of its Product guide (March 2007), the scheme had 6% of assets as cash one year ago. Six months ago the percentage rose to 31.9% and now it is about 29.1%.
Sitting on a large cash base, that too for a long time, would not be a great thing to do for investors always want their money work the best. However, in market situations like these, this would become inevitable. Mutual funds should strike a proper balance and put investor money to the best possible use.
Add commentApril 8th, 2007