Should you invest in equity, debt or stay liquid at a time when every market instrument seems to be erratic? Today, this is the biggest dilemma that mutual fund managers are facing. For instance, till Monday, the BSE Sensex was plummeting since a section of the managers preferred to stay liquid (investing money in call market) and picking value stocks very selectively. But on Tuesday, the Sensex showed a relief rally.
Given the fact that some equity prices have been touching all-time lows and some premium quality scrips are available at bargain basement prices, fund managers are also taking this opportunity to churn portfolios. Says a fund manager at IDBI Principal Mutual Fund:
