Mutual funds (MFs) were sitting on a Rs 1.80 lakh crore cash pile in October, representing 5.05% of the total AUM. In September, cash holdings stood at Rs 1.86 lakh crore or 5.02% of the total AUM. The total equity AUM in October was recorded at Rs 35.72 lakh crore.
Around five MFs held more than Rs 10,000 crore in cash in their portfolios in October 2024. Among the 43 MFs, SBI Mutual Fund had the highest cash holding, with Rs 31,126 crore as of October 2024, representing 4.46% of its total AUM. The largest fund house by assets under management had an equity AUM of Rs 6.66 lakh crore in October.
ICICI Prudential Mutual Fund held Rs 27,217 crore in cash, which accounted for 6.90% of its total AUM. HDFC Mutual Fund held Rs 22,711 crore in cash, representing around 6.16% of its total AUM. As of October 2024, HDFC Mutual Fund's equity AUM stood at Rs 3.45 lakh crore.
PPFAS Mutual Fund held Rs 17,116 crore in cash in October, which accounted for 19.86% of its total AUM. Axis Mutual Fund held Rs 13,015 crore in cash, representing 6.75% of its total AUM.
Also Read | 7 ELSS mutual funds turn Rs 10,000 monthly SIP to over Rs 1 crore in 25 years
Nippon India Mutual Fund and Quant Mutual Fund held Rs 8,656 crore and Rs 8,200 crore in cash, respectively, in their portfolios. Aditya Birla Sun Life Mutual Fund held Rs 3,297 crore in cash, which accounted for around 2.20% of its total AUM in October.
Motilal Oswal Mutual Fund held Rs 2,180 crore in cash in October, which accounted for around 3.12% of its total AUM. The fund house had an equity AUM of Rs 67,818 crore during the same period.
Around 16 MFs held less than Rs 500 crore in cash in their portfolios, and nine held less than Rs 100 crore in October. Old Bridge Mutual Fund held Rs 67.28 crore in cash, which accounted for 7.18% of its total AUM.
Helios Mutual Fund, a relatively new entrant in the mutual fund industry, held Rs 65.87 crore in cash in its portfolio, which accounted for 2.69% of its total AUM. Navi Mutual Fund and Taurus Mutual Fund held Rs 44.32 crore and Rs 33.23 crore in cash, respectively, in their portfolios.
Based on the percentage of funds, PPFAS Mutual Fund had the highest cash holding, with 19.86% of its total AUM in cash. Next on the list was Samco Mutual Fund, which had a cash allocation of 18.52%, followed by Quantum Mutual Fund with a cash allocation of 15.05% of its total AUM.
SBI Mutual Fund had the highest equity AUM of ₹6.66 lakh crore, followed by ICICI Prudential Mutual Fund with an equity AUM of ₹3.67 lakh crore as of October 2024.
Fund managers are allowed to keep a portion of their portfolio in cash to meet events like redemptions or to make investments when they identify potential opportunities in the market.
Also Read | Best flexi cap mutual funds to invest in November 2024
The increase in cash holdings as a percentage of assets by mutual funds suggests that fund houses are adopting a cautious stance in the current market environment. Newer fund houses, like Samco, may prefer holding cash in anticipation of bargain hunting during a potential market correction. Meanwhile, more conservative funds, such as PPFAS, tend to keep cash when they believe the market has become expensive.
Around five MFs held more than Rs 10,000 crore in cash in their portfolios in October 2024. Among the 43 MFs, SBI Mutual Fund had the highest cash holding, with Rs 31,126 crore as of October 2024, representing 4.46% of its total AUM. The largest fund house by assets under management had an equity AUM of Rs 6.66 lakh crore in October.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
PPFAS Mutual Fund held Rs 17,116 crore in cash in October, which accounted for 19.86% of its total AUM. Axis Mutual Fund held Rs 13,015 crore in cash, representing 6.75% of its total AUM.
Also Read | 7 ELSS mutual funds turn Rs 10,000 monthly SIP to over Rs 1 crore in 25 years
Nippon India Mutual Fund and Quant Mutual Fund held Rs 8,656 crore and Rs 8,200 crore in cash, respectively, in their portfolios. Aditya Birla Sun Life Mutual Fund held Rs 3,297 crore in cash, which accounted for around 2.20% of its total AUM in October.
Motilal Oswal Mutual Fund held Rs 2,180 crore in cash in October, which accounted for around 3.12% of its total AUM. The fund house had an equity AUM of Rs 67,818 crore during the same period.
Around 16 MFs held less than Rs 500 crore in cash in their portfolios, and nine held less than Rs 100 crore in October. Old Bridge Mutual Fund held Rs 67.28 crore in cash, which accounted for 7.18% of its total AUM.
Helios Mutual Fund, a relatively new entrant in the mutual fund industry, held Rs 65.87 crore in cash in its portfolio, which accounted for 2.69% of its total AUM. Navi Mutual Fund and Taurus Mutual Fund held Rs 44.32 crore and Rs 33.23 crore in cash, respectively, in their portfolios.
Based on the percentage of funds, PPFAS Mutual Fund had the highest cash holding, with 19.86% of its total AUM in cash. Next on the list was Samco Mutual Fund, which had a cash allocation of 18.52%, followed by Quantum Mutual Fund with a cash allocation of 15.05% of its total AUM.
SBI Mutual Fund had the highest equity AUM of ₹6.66 lakh crore, followed by ICICI Prudential Mutual Fund with an equity AUM of ₹3.67 lakh crore as of October 2024.
Fund managers are allowed to keep a portion of their portfolio in cash to meet events like redemptions or to make investments when they identify potential opportunities in the market.
Also Read | Best flexi cap mutual funds to invest in November 2024
The increase in cash holdings as a percentage of assets by mutual funds suggests that fund houses are adopting a cautious stance in the current market environment. Newer fund houses, like Samco, may prefer holding cash in anticipation of bargain hunting during a potential market correction. Meanwhile, more conservative funds, such as PPFAS, tend to keep cash when they believe the market has become expensive.
