Cash holdings with mutual funds at 16-month low of 4.8% in September

Fund houses put cash to use despite market uncertainty

Despite the uncertainties created by rising bond yields and oil prices, fund managers have been proactively deploying fresh flows into the equity market.

The cash available with equity fund managers, which has remained lower at around 5 per cent in the past few months, hit a 16-month low of 4.8 per cent in September, shows a Motilal Oswal Financial Services report.

Cash holdings in equity schemes had topped 6 per cent in February amid subdued equity market sentiment. The scenario changed at the end of March as the market started gaining momentum after remaining range-bound for almost a year and a half.

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