Mutual Fund Boost Cash Reserve By Rs. 7000 Crore to Rs. 1.87 Lakh Crore in December
A mutual fund is like a money pool where investors invest their money, and the money is systematically managed by experts of that mutual fund who invest it in stocks, bonds, or anything else to grow.
The cash reserves of mutual funds increase by Rs. 6,937 crore on a monthly basis, increasing from Rs. 1.80 lakh crore in November to Rs. 1.87 lakh crore in December 2024.
In November 2024, 4.98% of the total assets under management (AUM) were kept as cash. This increased to 5.17% in December 2024. The total equity AUM in December stood at Rs. 36.29 lakh crore.
Five of 43 mutual fund companies had more than Rs. 10,000 crore in cash in their portfolios. Out of them, SBI Mutual Fund is the largest one, which held cash at an all-time high of Rs. 31,767 crore in December. This made up 4.61% of its total assets under management (AUM).
HDFC Mutual Fund had Rs. 25,248 crore in cash, which shows 6.74% of its total assets. ICICI Prudential Mutual Fund held Rs. 23,477 crore in cash. PPFAS Mutual Fund had Rs. 8,247 crore in cash, while Axis Mutual Fund had Rs. 15,052 crore in cash, accounting for 7.69% of its total AUM.
Five mutual funds had less than Rs. 1,000 crore in cash in their portfolios. Edelweiss Mutual Fund had Rs. 741 crore and Bank of India Mutual Fund had Rs. 650 crore in cash in their portfolios.
Old Bridge Mutual Fund had Rs. 133 crore in cash, and Trust Mutual Fund had Rs. 108 crore in cash in their portfolios. Groww Mutual Fund had Rs. 67.20 crore in cash, while Helios Mutual Fund had Rs. 64.44 crore. NJ Mutual Fund had Rs. 12.84 crore in cash in its portfolio in December.
PPFAS Mutual Fund has maximum cash in its investments, with 19.82% of its total funds in cash. Samco Mutual Fund came in second, holding 18.94% of its total AUM. NJ Mutual Fund had the smallest amount of cash in its total investments at just 0.57%.
SBI Mutual Fund had the largest amount of money in stocks, with Rs. 6.57 lakh crore in December. It was followed by ICICI Prudential Mutual Fund, which had Rs. 3.77 lakh crore in stocks. On the other hand, Shriram Mutual Fund had the least in stocks, with only Rs. 367 crore.
Fund managers can keep some of the money in cash so they can handle things like investors pulling out their money or using it to invest when they find good opportunities in the market.
