11 funds are losing their faith in this red-hot market. Gutsy or foolish?

One should strike while the iron is hot, and given that the stock market has been red hot, equity funds are piggybacking on this epic run. Not all equity funds, though. Some have deliberately cooled off and are keeping their powder dry for the right time. What we mean is that there is a tribe of equity funds that are holding on to cash or investing in debt despite the market scaling new peaks. While these funds are accepting money from investors right now, they are not investing it in stocks. Or at least not as much as one would think they should. Is it a bad thing? Not if you are a part of these gunshy schemes. Both Neil Parag Parikh, chairman and CEO of PPFAS Mutual Fund , and George Thomas, fund manager at Quantum , struck a similar note of caution, saying the "starting valuations are not so cheap" and that many companies have "crossed our fair value estimates" in the current go-go market. The stashed cash XI These 11 diversified equity funds have cash holdings of more than 10 per cent Fund name Current cash holding (%) Median cash holding (%) Parag Parikh Flexi Cap  17.6 16.0 Parag Parikh ELSS Tax Saver  16.7 17.1 Quantum Small Cap  16.5 17.3 Quantum ELSS Tax Saver