Cash holding of mid-cap and small-cap funds has increased significantly following stretched valuations of these companies and the regulatory rejig of the fund categorisation based on market capitalisation, which reduced the basket of securities. On the other hand, cash with large-cap funds is on a decline reflecting that fund managers prefer to hold prominent companies with proven business fundamentals.
Cash level at large-cap funds (excluding ETFs) dropped to 3.6 per cent of the assets ..
