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Equity MFs reduce cash holdings in June, cash-to-assets ratio falls to 12-month low

July 15, 2025

Mumbai, July 15

Equity mutual funds significantly reduced their cash holdings in the month of June, indicating a resurgence of market confidence, according to latest data.

The average cash-to-assets under management (AUM) ratio fell from 3.56 per cent in May to a 12-month low of 3.09 per cent last month, according to data from Prime MF Database.

In absolute terms, mutual funds invested almost Rs 15,000 crore more in stocks each month, bringing the total amount of money in all schemes down from Rs 1.65 lakh crore in May to Rs 1.5 lakh crore in June.

Approximately 62 per cent of active equity mutual funds decreased their cash holdings, up from 60 per cent the month before.

Following this, Motilal Oswal Mutual Fund reduced its cash holdings by over Rs 6,500 crore and halved its cash-on-hand ratio.

Additionally, PPFAS and Axis Mutual Fund reduced cash holdings by Rs 1,500 crore and Rs 2,300 crore, respectively.

Kotak Mahindra, HDFC, Franklin Templeton and Sundaram Mutual Fund were among the large asset managers that reduced their cash exposure, the Database said.

 

 

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