Mutual funds build up their cash reserves

Associated Press NEW YORK -- With the thuds of falling stock prices emanating from Wall Street in recent months it's understandable that some investors might want to bolt and bury themselves in cash. They might find their mutual funds are doing a bit of that as well. Although a weak dollar is partly to blame for the rising costs of gas and other commodities, cash is still a comforting asset to many investors because of the market's upheaval. And some funds, having sold off parts of their portfolios, are holding more cash these days as they look for bargains and signs about where the market might be headed. And others have enough new money coming in that they've decided not to invest it right away. "We're not going to be changing our philosophy just because of the times we are in," said Russell Croft of Croft Value Fund. "That... [read full story]