Mutual funds saw their cash pile declining by nearly nine per cent to Rs 13,045 crore last month on higher redemption pressure from corporate houses at the end of the September quarter.
According to the Mutual Fund performance report by domestic brokerage firm Sharekhan, cash levels declined by 8.9 per cent to Rs 13,045 crore in September 2009.
"At the end of the September investors pulled out money from all fund categories. Fund managers were maintaining high cash balance during August-end to meet the redemption requirements at the end of the September quarter," Taurus Mutual Fund Managing Director RK Gupta said.
The BSE barometer Sensex gained 9.32 per cent in September to cross the 17,000 level. "The market is currently at high levels and fund deployment in equities would be less at this time. October would be a month of consolidation and the cash level is expected to increase at the end of the month," Gupta said.
"Flush with cash, MFs are well placed to maintain the buying interest and propel the market forward," Sharekhan said.
