Mutual Fund Cash Level
Definition
The percentage amount of mutual fund's assets that are held as cash or cash equivalents. It determines the strength of the money manager's buying power. A low level indicates that buying power is low, hence driving down the stock prices. On the contrary, a high level indicates greater buying power, hence driving the stock prices up. It can be calculated as follows:Mutual fund cash level = (Value of mutual fund cash and equivalents / Total value of mutual fund assets)
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