MUTUAL FUND CASH LEVEL

Percentage of a mutual fund’s total assets that are presently held as cash or cash equivalents. While it can pertain to the cash level of a single fund, it oftentime denotes to the sum level of cash held across a broad demographic of mutual funds, which is used to measure the buying power and market sentiment. A high level signifies bigger buying power but a low one means a smaller buying power.

To compute, divide the value of mutual fund cash and equivalents by the total value of mutual fund assets.