Last month, around five fund houses had a cash pile of over Rs 10,000 crore. Among 43 mutual fund houses, SBI Mutual Fund had the highest cash allocation in its portfolio as of August 2024. The largest fund house had Rs 30,675 crore in cash in its portfolio, which accounted for 4.33% of the total AUM.
ICICI Prudential Mutual Fund had around Rs 30,357 crore in cash, which was 7.72% of total assets under management. HDFC Mutual Fund It had Rs 25,012 crore in cash in its portfolio. This cash holding accounted for 6.77% of the total assets under management. Quantitative mutual fund had Rs 17,102 crore cash in its portfolio as of August 2024 against Rs 12,269 crore in July.
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Kotak Mutual Fund had Rs 6,101 crore cash in its portfolio, which accounted for 2.84% of the total AUM. The fund house had an equity AUM of Rs 2.08 lakh crore. Around 21 fund houses had less than Rs 1,000 crore cash. Of these 21, nine fund houses had less than Rs 100 crore cash in their portfolio. Old Bridge Mutual Fund and Helios Mutual Fund had Rs 39.54 crore and Rs 27.74 crore cash respectively in their portfolios. Zerodha Mutual Fund had the lowest cash allocation of Rs 0.58 crore, which accounted for just 0.08% of the total AUM.
Among these 43 fund managers, 10 of them had an equity portfolio of over Rs 10,000 crore as of August. SBI Mutual Fund had the highest AUM at Rs 6.77 lakh crore, followed by ICICI Prudential Mutual Fund, which had AUM of Rs 3.63 lakh crore.
Mirae Asset Mutual Fund and Aditya Birla Sun Life Mutual Fund had equity AUM of Rs 1.52 lakh crore and Rs 1.51 lakh crore respectively as of August 2024. Shriram Mutual Fund had the lowest equity AUM of Rs 169.92 crore as of August.
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In percentage terms of total assets under management, the largest amount of cash held by Quant Mutual Fund was 19.09% of total assets under management. Next on the list was Samco Mutual Fund, which had a cash allocation of 18.25% of total assets under management.
In August, PPFAS Mutual Fund’s cash holdings as a percentage of total assets under management were 16.91%. HDFC Mutual Fund’s cash holdings were 6.77% of total assets under management.
The cash holdings of ITI Mutual Fund and DSP Mutual Fund were 4.18% each of their respective total AUM.
Fund managers are allowed to hold a portion of their portfolio in cash to meet events such as redemptions or make investments when they see a potential opportunity in the market.
The rise in cash holdings as a percentage of assets by mutual funds indicates that fund houses are moving cautiously in the current market scenario. New fund houses like Samco may normally try to hold cash and wait for offers to come in a possible correction. Some conservative mutual funds like PPFAS always hold cash when they sense that the market has become expensive.
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