MFs keep the powder dry as Nifty nears 'correction', cash holdings rise

Cash holdings of equity schemes at top 20 funds rise to 6.2%; in at least four, the holdings are above 10%

Abhishek Kumar Mumbai
Mutual Fund

Mutual funds' average cash holdings in equity schemes topped 6 per cent in February as fund managers went slow on deployment of new inflows on expectations of better buying opportunities amid uncertainties in the market.
"Right now our cash holding is at a higher level. We never force ourselves to buy stocks as and when fresh money comes in. Market has been choppy and we have been waiting for the stock prices to come to our target levels. As and when the opportunity arises, we will deploy the cash," said Rajeev Thakkar, Chief Investment Officer and Director, Parag Parikh Financial Advisory Services (PPFAS) MF, which has the highest cash holding in equity schemes (14 per cent) among the top 20 fund houses.
Cash levels in equity schemes have been rising consistently since May 2021, when the average cash holding of equity schemes of top 20 fund houses stood at 3.2 per cent, shows Motilal Oswal Investment Services' fund folio repo

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First Published: Mar 15 2023 | 6:13 PM IST

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