The cash pile within smallcap mutual fund (MF) schemes has grown over the past few months amid a relentless rally in stocks in this space. While fund managers usually don't make cash calls, incessant inflows and valuation discomfort have forced their hand.
At the end of January, the top 10 schemes had over 12,160 crore in cash, compared to ₹8,700 crore in August 2023. These top 10 schemes together have 2 trillion in assets under management (AUM). Cash accounted for 6.1 per cent of it as of the end of January, 60 basis points higher than the August level, according to an analysis of smallcap portfolios.
Between August and January, the National Stock Exchange Nifty Smallcap 100 has rallied 37 per cent.
Smallcap stocks have been trading at significantly higher valuations compared to their long-term averages.
Bu hikaye Business Standard dergisinin February 16, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin February 16, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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