Listen to this article
The MF industry is sitting on a cash pile of Rs. 2.45 lakh crore or 6% of the total equity assets in September 2024, shows a report released by Motilal Oswal Financial Services.
Quant MF, PPFAS MF and Motilal Oswal MF have the highest cash holdings in percentage terms across all fund houses, says the report.
Quant MF has the higher proportion of cash holding at 19.10% of its total equity assets. This translates into assets of Rs. 14,600 crore.
PPFAS MF and Motilal Oswal secure the next two spots with cash holding of 17.60% and 13.50% of total equity AUM, respectively. The value of cash holding were Rs.10,500 crore and Rs.7,250 crore, respectively.
In absolute terms, SBI MF, ICICI Prudential MF and HDFC MF record highest cash holding of Rs.56,000 crore, Rs.46,000 crore and Rs.34,500 crore, respectively. However, all three fund houses have less than 10% of equity assets in cash holding.
Other fund houses with highest cash holdings in absolute terms are Bandhan MF (Rs. 3,000 crore), DSP MF (Rs. 5,100 crore), Sundaram MF (Rs. 2,210 crore) and Tata MF (Rs. 4,160 crore).
Let’s check the table to know more:
|
Trends in Top 20 Mutual Funds by equity value |
|||
|
Mutual Funds House |
Equity Value |
Cash Holding % as on September 2024 |
Absolute terms value (in crore) |
|
Quant Mutual Fund |
76,300 |
19.10% |
14,573 |
|
PPFAS Mutual Fund |
59,700 |
17.60% |
10,507 |
|
Motilal Oswal Mutual Fund |
53,700 |
13.50% |
7,250 |
|
ICICI Prudential Mutual Fund |
5,12,700 |
8.90% |
45,630 |
|
HDFC Mutual Fund |
4,60,100 |
7.50% |
34,508 |
|
SBI Mutual Fund |
7,87,800 |
7.10% |
55,934 |
|
Bandhan Mutual Fund |
61,200 |
4.90% |
2,999 |
|
DSP Mutual Fund |
1,18,500 |
4.30% |
5,096 |
|
Sundaram Mutual Fund |
52,600 |
4.20% |
2,209 |
|
Tata Mutual Fund |
1,01,500 |
4.10% |
4,162 |
|
Franklin Templeton Mutual Fund |
96,400 |
4.10% |
3,952 |
|
UTI Mutual Fund |
2,63,600 |
3.90% |
10,280 |
|
Axis Mutual Fund |
1,97,100 |
3.80% |
7,490 |
|
Canara Robeco Mutual Fund |
95,500 |
3.20% |
3,056 |
|
Kotak Mahindra Mutual Fund |
2,77,000 |
3.00% |
8,310 |
|
Nippon India Mutual Fund |
3,78,500 |
2.80% |
10,598 |
|
Aditya Birla Sun Life Mutual Fund |
1,77,700 |
2.70% |
4,798 |
|
Invesco Mutual Fund |
65,800 |
2.60% |
1,711 |
|
HSBC Mutual Fund |
77,900 |
1.60% |
41,053 |
|
Mirae Asset Mutual Fund |
1,64,900 |
1.40% |
2,309 |
|
Total |
40,78,500 |
6.00% |
2,44,710 |
Note: Equity value represents the equity exposure of all MF schemes (including balanced and other schemes) and cash is derived by deducting equity AUM (Including foreign equity) from total AUM.
Akhil Chaturvedi, CBO, Motilal Oswal MF attributes this to rebalancing activities. He said, “This is due to profit booking by fund managers as a part of their rebalancing activities. This cash will be deployed in attractive opportunities.”
Rukun Tarachandani, Equity Fund Manager, PPFAS MF believes that in this environment, investors should stick to their asset allocation strategy. He said, “Currently, market valuations are generally high and the higher cash levels are function of limited investment opportunities available. When investing in equities, it's important to have a long-term perspective, ideally with a time horizon of at least 5 years.”
