Cash levels at MFs remain below one-year average level of 4.3% in December

Cash levels at mutual funds remained below one-year average level of 4.3 per cent in December. At Rs 271 billion, cash holdings were at 3.9 per cent of equity assets under management (AUM) of Rs 6,867 billion (open-ended equity schemes), data provided by Value Research showed.

The benchmark Sensex gained 28 per cent in 2017, while the broader markets rallied even more. On an absolute basis, however, cash holdings rose by Rs 14 billion in December over the previous month. These could be on the back of high net inflows in equity schemes during the month.

An analysis of cash levels at