As part of CNBC-TV18's 20th-anniversary celebrations, we bring you a unique insight into the mind of some of the top fund managers. In this episode of Fund Anatomy, CNBC-TV18's Sumaira Abidi is in conversation with Rajeev Thakkar, Chief Investment Office and Director at PPFAS Mutual Fund.

Rajeev has been associated with the PPFAS group since 2001 and has a passion for researching and analysing the company's fundamental attributes. True to the PPFAS philosophy, Rajeev is also a strong believer in the school of "value-investing".

Speaking about appropriate cash levels and stance going forward, Thakkar said: “There are two approaches that funds typically take with regards to cash. The first approach that some funds take is that the investors do the asset allocation or the advisors do the asset allocation. Once they give money to the fund, the fund has to be more or less 100 percent invested at all times, that is one approach. The approach that we take is that, though asset allocation matters and investors are looking for equity returns, sometimes the right opportunity may not just be there and we don’t force ourselves to invest if opportunities are not there. Our attempt is to deploy all the money, but if we are not finding stocks then the residual amount stays in cash.”

“Sensex and Nifty are close to all-times highs, the broader markets, the small and midcap indices or some sectoral indices have seen significant corrections,” he added.

First Published:Nov 5, 2019 4:22 PM IST