Why mutual funds are sitting on record cash piles
In July, mutual funds bumped up their cash holdings by ₹2,884cr to ₹2.06Lcr—ending a two-month dip.
Now, cash makes up 5.20% of all assets under management (AUM), slightly higher than June's 5.08%.
This move signals fund managers are treading carefully after a not-so-great Q1 earnings season.
Major players in the cash game
With markets feeling shaky, fund managers are keeping extra cash handy to handle withdrawals and wait for better investment chances.
SBI Mutual Fund leads with ₹34,592cr in cash (4.75% of its AUM), while ICICI Prudential and HDFC aren't far behind.
PPFAS stands out for its super-cautious approach—holding over 21% of its assets in cash.
Fund managers are now more selective in their approach
Instead of chasing big-picture trends, fund managers are now picking companies more selectively and holding back liquidity until the market looks more promising.
It's a careful balance: staying ready for good opportunities while playing it safe in uncertain times.