'Current valuations aren't cheap, so sitting on 17 per cent cash'

Valuations currently are not cheap, especially in the mid- and small-cap space. We have a disciplined investment philosophy and strategy where we don't blindly buy stocks on current fads and fancies. At PPFAS Mutual Fund, in fact, we stay away from hyped-up sectors and look for bargains in neglected sectors. We are patient investors and don't mind waiting for the right opportunities to come our way. We also don't force ourselves to invest if we do not find the right opportunities and are happy to sit on cash when valuations are stretched. Today, we are sitting on around 17 per cent cash. We are mindful of the fact that starting valuations will determine future returns. Right now is the time to be careful, cautious and selective about where we invest our investors' hard-earned money.

This article was originally published on November 05, 2024.