When you invest in mutual funds, you probably expect the managers to be a bit more creative than you would be with your piggy bank, yet a recent survey shows cash levels are on the rise in many portfolios.
A hefty cash stake can dent long-term returns and might irk individuals who wish to be fully invested at all times, but experts say it's not always a negative. Although a large chunk of uninvested change could be a warning signal that a portfolio has grown too large too quickly, it also might reflect a disciplined investment strategy, said Todd Trubey, a mutual fund analyst with Morningstar Inc. In the latter case, cash levels tend to grow when valuations are on the rise and bargain-priced stocks are scarce.
http://www.myrtlebeachonline.com/mld/myrtlebeachonline/business/12254158.htm
A hefty cash stake can dent long-term returns and might irk individuals who wish to be fully invested at all times, but experts say it's not always a negative. Although a large chunk of uninvested change could be a warning signal that a portfolio has grown too large too quickly, it also might reflect a disciplined investment strategy, said Todd Trubey, a mutual fund analyst with Morningstar Inc. In the latter case, cash levels tend to grow when valuations are on the rise and bargain-priced stocks are scarce.
http://www.myrtlebeachonline.com/mld/myrtlebeachonline/business/12254158.htm
