Amid geopolitical uncertainty, cash calls diverge sharply across the MF industry

According to a recent report by Motilal Oswal Financial Services, the cash positioning among the top 21 fund indicates that there is a clear split in how AMCs are reading the current market environment.

On one hand, some fund houses are sitting on significantly elevated cash levels, while some other fund houses remain largely invested.

PPFAS Mutual Fund leads the pack with a striking 21.8% cash holding, followed by Quant Mutual Fund at 13.8%. These are the only two fund houses that have double digit cash holding of their total corpus.

Axis Mutual Fund also ended up the financial year with relatively high cash holding at 9.6% while Bandhan Mutual Fund holds 6.7% of its corpus in cash by the end of March 2026.

In contrast, several large fund houses remain largely invested. Mirae Asset Mutual Fund has the lowest cash levels at 1.4% while Aditya Birla Sun Life Mutual Fund’s cash holding stood at 1.9%.

Invesco Mutual Fund is another fund house with lower level of cash holding at 2%.

However, most of the industry stood in a middle band of 3–8% cash, which includes large players like SBI Mutual Fund HDFC Mutual Fund and ICICI Prudential Mutual Fund with cash holding at 7.6%, 5.7% and 4.5%, respectively.

What does cash holding mean

• Generally, higher cash levels indicate a more tactical approach. It may mean that the fund manager is waiting for better entry points or is trying to manage the downside risk
• On the other hand, lower cash levels suggest conviction in staying invested despite market volatility
• Cash holding also means that the funds with higher cash may offer better downside protection in corrections but could lag in sharp rallies. These funds may suit conservative equity investors or those wary of valuations
• Similarly, low-cash funds are better positioned to capture upside but may see sharper drawdowns. Fully invested funds may align better with long-term SIP investors focused on compounding

Let’s have a look at the complete list of cash holding among the top fund houses:

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With their potential to offer tailored strategies, flexibility and access to niche opportunities, SIFs are rapidly gaining attention as a differentiated investment avenue, positioned between traditional mutual funds and alternative investment funds.

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