Key facts
- Mutual funds reduced cash holdings by over Rs 10,000 crore in May.
- Total cash holdings in May were Rs 1.87 lakh crore, down from Rs 1.98 lakh crore in April.
- Cash represented 4.24% of total assets under management in May.
- Equity AUM increased by Rs 46,274 crore to Rs 44.25 lakh crore in May.
- PPFAS Mutual Fund had the highest cash allocation at 17.67% of its total AUM.
Mutual funds significantly reduced their cash allocations in May, decreasing holdings by over Rs 10,000 crore to Rs 1.87 lakh crore. This brought the proportion of cash to 4.24% of total assets under management. Concurrently, the equity assets under management (AUM) experienced a monthly increase of Rs 46,274 crore, reaching Rs 44.25 lakh crore.
Among fund houses, PPFAS Mutual Fund maintained the highest cash allocation, with Rs 26,104 crore representing 17.67% of its total AUM. SBI Mutual Fund, the largest fund house by assets managed, held Rs 25,913 crore in cash, accounting for 3.43% of its AUM. HDFC Mutual Fund followed with Rs 24,488 crore in cash holdings. ICICI Prudential Mutual Fund and Axis Mutual Fund reported Rs 18,539 crore and Rs 13,338 crore in cash, respectively. Quant Mutual Fund also held a substantial amount of cash, with Rs 12,182 crore in its portfolio.
PPFAS Mutual Fund stated in its monthly release that its cash holdings, debt, and money market instruments, along with arbitrage positions, amount to approximately 14.77%, which can be deployed for long-term investments at opportune times. Other fund houses like Nippon India Mutual Fund had Rs 5,386 crore in cash (1.17% of total assets), and Mirae Asset Mutual Fund had nearly Rs 1,832 crore (1.09% of total assets).