From SBI MF to Aditya Birla Sun Life MF, top mutual funds bulk up on cash

Five of the top 10 mutual funds by equity value are holding cash in the range of 8-11 per cent, a reasonably high number. Equity funds typically hold cash amounting to 1-5 per cent of the scheme’s assets, and raise their cash exposure when they expect the market to fall, or when the risk-reward situation is not favourable. It might go against the fundamental tenet of staying invested at all times, but is a strategy employed by fund managers to either protect the downside in the event of a market fall or to avoid paying a high price for a