Cash levels of equity mutual funds have risen in the previous calendar year amid volatility in the markets and rich valuations of Indian shares.
Cash levels as a percentage of total equity assets rose to 4.9% at the end of 2022, compared with 4.2% in the year before. Nine fund houses had cash levels of over 5%, with PPFAS topping the list, with 14.4% of its equity assets being held in cash. The fund house has seen sizable inflows last year and may have been unable to deploy a portion of it due to rich valuations and the cap on overseas investment imposed by the regulator.
