Mutual funds battle redemptions too

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Hedge funds aren't the only ones grappling with a rush to the exits. Equity mutual funds are likewise grappling with nervous investors who may want to cash out soon, reports Business Week. According to TrimTabs, redemptions as a percentage of all fund assets was 3.3 percent as of Nov. 17. The all time high were 4.3 percent in the bear market of 2002-2003. Is that a big deal? Look at it this way: If redemptions were to hit the same record level, that would amount to an additional $38 billion leaving funds. That might entail some big-time selling. Obviously, liquidity management is big issue right now. Many have raised cash.

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