Mutual fund cash exposure declines for the first time in six months

Equity MF inflows fell for the fifth consecutive month to ₹19,013 crore-the lowest in 13 months

Equity mutual fund (MF) schemes reduced their cash holdings in May for the first time in six months, as geopolitical and trade tensions showed signs of easing.

 

According to a Motilal Oswal Financial Services report, the top 20 fund houses held 6.8 per cent of their portfolios in cash as of May 31, down from a record high of 7.2 per cent in April 2025. 

 

Fund managers have been increasing cash levels since December 2024 amid a market correction and rising global uncertainties.

 

May brought relief on multiple fronts. Fears of an India–Pakistan conflict subsided after a ceasefire, while progress