Uncertainty prompts MFs to sit on cash

DBS Chola9.70 Birla Sunlife14.68 HSBC14.44 Lotus India9.29 Mirae Asset

14.14

Reliance25.53 SBI 12.81 Sundaram BNP Paribas11.59 Tata20.89 UTI14.56 Source: Value research
(As of May 31)  However, insurance companies have remained net buyers in the market on account of huge collections from Ulip schemes, said market watchers. "There are virtually zero redemptions in Ulips as these are long-term funds," said the chief investment officer of an insurance company.  According to data from Value Research, Birla Sunlife and Tata Mutual Fund are held as much as 14 per cent and 20 per cent in cash, respectively, as of May 31.  For UTI mutual fund and SBI mutual fund, cash levels stood at 14.56 per cent and 12.81 per cent. Reliance mutual fund maintained the highest cash level at 25.53 per cent.  "We are moving quite conservatively in the market and our current cash level would be around 8-10 per cent. We expect to get inflows of Rs 100 crore this month, much lower than in healthy market conditions," said Ajay Bagga, CEO, Lotus MF.