Archive · 2 Jun 2025
Equity Mutual Funds Hold Record Cash Amid Market Shifts
Imagine a group of money managers who invest in stocks.
They've recently collected a lot of cash, the most they've ever had!
They are holding this money because they think the stock market might change a lot soon.
They're also expecting new stocks to be available.
They might invest when things seem right, like if oil prices fall or if interest rates go down.
This way, they are ready to make smart moves when the time is best.
Equity mutual funds hold a record ₹2.15 lakh crore in cash as of April 2025.
Cash levels have risen consistently over the past six months.
SBI Mutual Fund holds the highest absolute cash at ₹36,000 crore.
PPFAS Mutual Fund leads in cash percentage, with 23.6%.
Fund managers are holding cash as a buffer against market uncertainty and upcoming opportunities.
- Who
- Equity mutual funds
- What
- Equity mutual funds are holding record cash levels.
- When
- As of April 2025
- Where
- N/A
- Why
- Fund managers are building cash to act when market conditions align.
- Total Cash Held
- ₹2.15 lakh crore
- Cash Holding Increase
- From 5.7% to 7% of equity AUM (November 2024 to April 2025)
- Largest Cash Holder (Absolute)
- SBI Mutual Fund (₹36,000 crore)
- Largest Cash Holder (Percentage)
- PPFAS Mutual Fund (23.6%)
- Main Reason 1
- Volatility cushion
- Main Reason 2
- Anticipated supply wave
- Main Reason 3
- Favourable macro triggers