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%

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