Mutual funds, a "tactical" investment for SIFs

Mutual funds have become a cash-management instrument SIFs (financial investment companies) are increasingly resorting to, as an alternative to banking deposits, given their stronger liquidity and higher profitability. SIF Muntenia bolstered its mutual fund placements by around 635,000 euros (2.25m RON) in July, according to data released by the National Union of Collective Placement Bodies (UNOPC). In late July, SIF Muntenia had 1.47 million euros (5.2m RON) invested in fund units. SIF Moldova, SIF Banat-Crisana and SIF Oltenia also had mutual fund placements totalling a value of 1.16 million euros (4.1m RON). However, SIFs are still placing most of their cash in banking deposits. The value of SIFs’ banking deposit holdings at the end of July went beyond 71 million euros (252m RON). SIFs’ net assets surged by over 33% in the first 7 months of this year, reaching 1.83 billion euros.