Cash Position Weight
Asset symbol is not found or was delisted
Indicator Description
Cash Percentage | = | % of Cash | in the fund |
Cash Position Weight In A Nutshell
When looking into funds or your own portfolio, cash is important because it will allow you to purchase more assets when the prices fall, but it will keep you safe from an overall market downturn. Many people look at cash and think that’s not a position, but it certainly is and can be used to your advantage in your investing style.
Typically in funds or within your own portfolio, there are three main categories, which include equities, bonds, or cash. Many people fail to realize cash is a position and it is important it is utilized properly. When the market is roaring, you may want to see minimal cash because funds should be invested.
Closer Look at Cash Position Weight
When looking into a mutual fund, you may want to see little cash because the fund is supposed to be going towards a goal for the annual return. The diversification within the fund should be enough to eliminate specific risks, meaning most of the cash should be put to work. On the other hand, if you are in a bond fund, it may be more acceptable to have a little more cash on hand as holding cash is essentially risk free.
Negatives to having cash in a fund or your portfolio is that the money is not growing. There are options such as money market accounts, but that will earn minimal interest and is not an investment for the long term, but rather capital preservation. Also, you have to look at the inflation rate, because if your money is not earning over 2%, you run the risk of losing money due to inflation. There are many factors involved with cash and each situation has its pros and cons, so be sure to understand what each scenario is telling you.
Rounding the discussion, you typically want to see most, if not all the funds available being invested because the missed opportunities are greater. If another 2008 happens, then it is completely understandable that cash positions are larger because it will limit the negative affects. If you have questions, reach out to the companies that produce your products you might invest in and ask why they have cash allocations as they do. Be sure to have a full understanding before moving into new positions, and if you still feel nervous, just forgo that particular product and check another one out. Cash position weighting is just as important as any other factor in your portfolio or the funds you are investing in.
Other Suggestions
F | Ford Motor | Company |
F-PB | Ford Motor | Company |
FAX | Aberdeen Asia Pacific If | Fund |
FM | iShares MSCI Frontier | ETF |
FVX | Treasury Yield 5 | Index |
FXP | FXP | Cryptocurrency |
F43628C65 | SOCGEN 425 19 AUG 26 | Corporate Bond |
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Explore Investing Ideas
You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did you try this?
Run Portfolio Manager Now
Portfolio ManagerState of the art Portfolio Manager to monitor and improve performance of your invested capital |
All Next | Launch Module |
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Stocks Directory Find actively traded stocks across global markets |