Equity Mutual Fund Cash holding of the schemes of May 2025 has seen a decline of 4.4 per cent on a month-by-month basis. Primemfdatabase.com According to the cash holding in these schemes has come down from Rs 1.73 lakh crore to Rs 1.65 lakh crore. Cash holding has declined by Rs 7,607 crore during this period. The cash level as part of the Asset Under Management (AUM) fell to 3.56 per cent in May, which was 3.92 per cent last month. This is a sign of increasing investment in equity market.
Of the 43 mutual fund houses included in analysis, 16 have increased their cash holding while 27 have reduced their cash holding. The biggest cut is from some of the largest fund houses. SBI Mutual Fund has cut Rs 3,839 crore in its cash holding. After that ICICI Prudential Mutual Fund has cut Rs 3,025 crore. Axis Mutual Fund and PPFAS Mutual Fund have also reduced cash holding of Rs 2,821 crore and Rs 2,460 crore. Quant Mutual Fund has reduced its cash holding of Rs 1,597 crore.
On the other hand, HDFC Mutual Fund has increased its cash holdings by Rs 1,736 crore. At the same time, Kotak Mahindra Mutual Fund and DSP Mutual Fund have increased its cash holding by Rs 1,007 crore and Rs 760 crore. Canara Robco Mutual Fund has increased its cash holding by Rs 981 crore. Whereas Bank of India Mutual Fund has increased its cash level more than doubled with an increase of Rs 255 crore in its cash holding.
Talking about fund houses with small asset under management, Old Bridge Mutual Fund has increased its cash holding from 3.5 per cent to 13.4 per cent of its equity AUM. Meanwhile, Samco Mutual Fund has reduced its cash holding from 8.1 per cent to 1.9 per cent.
During the month of May, the Nifty increased by about 1.8 per cent despite the market ups and downs. Whereas during this period the Sensex gained about 1.5 percent. Equity investment has increased due to the boom in the market. Most experts remain bullish about Indian markets. A recent note by Bandhan Mutual Fund states that India has been the best performing market at global level in the three months ending May 2025. The report said, “Compared to 16 per cent of India’s gains, global and developed markets have gained just 2 per cent. While the Emerging Market has gained 5 per cent in a period of 3 months in the end of May 2025.”
Market Outlook: Nifty closed close to 24950 with edge, know will it be fast on June 17
But not everyone sees investment opportunities. In a conversation with Moneycontrol, Chirag Mehta, CIO of Quantum Mutual Fund, said that he still had about 12-14 percent cash. The market is still looking quite expensive. Only if good shares are found in the right price, then you will shop. The valuation looks good in only a few sectors.
Disclaimer: The ideas given on Moneycontrol.com have their own personal views. The website or management is not responsible for this. Money control advises users to seek the advice of certified experts before taking any investment decision.
