The cash pile of equity mutual funds (MFs) has climbed to multi-year highs, amid sharp investor inflows since October. Steep volatility in the markets has made fund managers cautious, awaiting opportunities to deploy the cash.
According to an Edelweiss report, January ended with the aggregate cash portion of equity MFs at Rs 28,300 crore, five per cent of all assets under management (AUM). This was Rs 20,800 crore or 4.73 per cent of equity AUM a month before, and from Rs 16,600 crore or 3.77 per cent at end-November.
