Holding too much cash can be a mistake, experts say [Video]

It wasn’t long ago that investors earned practically 0% returns on cash.

As the Federal Reserve has kept interest rates high to combat high inflation, you can easily earn 5% annual percentage yields on savings accounts and other low-risk vehicles.

Some experts are now warning it’s possible to get too comfortable with those super-safe returns and miss out on bigger market returns.

“We’re too obsessed with cash,” Callie Cox, chief market strategist at Ritholtz Wealth Management, wrote last week in a blog post.

An estimated $6 trillion in cash is parked in money market funds.

Industry research finds younger investors — those with the longest time horizon to absorb risk — are allocating the most to cash.

More from Personal Finance:Is the U.S. stock market too ‘concentrated’?Americans struggle to shake off a ‘vibecession’Retirement ‘super savers’ have the biggest 401(k) balances

More than half — 55% — of wealthy younger investors ages 21 to 43 ramped up their cash …