Fund managers are keeping cash in hand amid strong inflows and elevated valuations in the small and midcap space.
Stress data shows that nearly half of the schemes in the smallcap space are holding cash of 5 per cent or more at the end of February 2024.
By comparison, only 20 per cent of the midcap schemes had over 5 per cent cash in their portfolio during the same period. As of February 2024, smallcap funds had Rs 15,226 crore in cash.
