A
Andy
06 Aug 2012 19:31
Link
Investment funds are currently holding very large amounts of cash. Most of their value is held in cash.
The funds should invest more in shares and become more involved in public corporations. Such investments will create more trading in shares and will probably increase the value of public corporations.
To stimulate more investment, funds will not sell shares if their cash level exceeds 50% of the total value of the fund unless they have made a very significant profit on these shares.
The funds will even refuse to sell shares with a loss, even when manual orders are entered, if their cash level is higher than 50% of the total value of the fund but will rather keep these shares in their portfolio.
This upcoming change in the next weeks, is also intended to stimulate more investment and prevent bad transactions that are intended to make money for the country or an enterprise by making the funds sell at a loss.
The percentage of cash will be reduced gradually until nearly all cash held by funds is invested in the share market.
The funds should invest more in shares and become more involved in public corporations. Such investments will create more trading in shares and will probably increase the value of public corporations.
To stimulate more investment, funds will not sell shares if their cash level exceeds 50% of the total value of the fund unless they have made a very significant profit on these shares.
The funds will even refuse to sell shares with a loss, even when manual orders are entered, if their cash level is higher than 50% of the total value of the fund but will rather keep these shares in their portfolio.
This upcoming change in the next weeks, is also intended to stimulate more investment and prevent bad transactions that are intended to make money for the country or an enterprise by making the funds sell at a loss.
The percentage of cash will be reduced gradually until nearly all cash held by funds is invested in the share market.