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mutual fund cash-to-assets ratio

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Financial Dictionary

mutual fund cash-to-assets ratio

A ratio expressing the proportion of total assets held in cash by mutual funds. Because cash indicates liquidity and potential buying power on the part of mutual funds, a high ratio is generally considered bullish and a low ratio is considered bearish. See also sentiment index.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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