Equity Mutual Fund Cash Holdings Drop to 19-Month Low of ₹1.84 Lakh Crore in June 2026

The cash holdings of equity mutual funds fell to a 19-month low in June 2026. Mutual funds increasingly channelled more funds into equities due to favourable market conditions, reducing cash holdings.  

This trend led to a decrease in cash reserves to ₹1.84 lakh crore, the lowest since November 2024, when holdings were ₹1.80 lakh crore, as per The Moneycontrol news report. 

Decrease in Cash Holdings of Equity MFs in June 2026 

In June 2026, equity mutual funds held ₹1.84 lakh crore in cash, a reduction of 2.3% from ₹1.88 lakh crore in May 2026. Cash represented around 4% of total equity assets under management (AUM), down from 4.9% in December 2025, as per ACE Equities data. 

Fund Wise Cash Changes 

Among 54 mutual fund houses, 31 reduced their cash holdings in June 2026. SBI Mutual Fund saw its cash reserves decrease to ₹22,084 crore from ₹25,914 crore. Similarly, PPFAS Mutual Fund and Motilal Oswal Mutual Fund reported reductions to ₹24,108 crore and ₹2,532 crore, respectively. 

Increased Cash Holdings 

Conversely, some funds increased their cash holdings. Quant Mutual Fund raised its reserves to ₹14,008 crore in June 2026 from ₹12,183 crore in May 2026, while Nippon India Mutual Fund increased holdings to ₹7,195 crore from ₹5,387 crore. ICICI Prudential Mutual Fund's cash holdings climbed to ₹20,042 crore from ₹18,540 crore. 

Read More: Top 3 Performing Thematic International Funds with Returns up to 43.74% in Last 1 Year! 

Market Performance 

The domestic equity markets remained robust in June 2026, with the Sensex and Nifty both advancing around 2%. The BSE 150 MidCap index rose by 1%, and the BSE 250 SmallCap index saw a 4% increase, underpinning the strategic equity investments by mutual funds. 

Conclusion 

In June 2026, the cash levels of equity mutual funds decreased to ₹1.84 lakh crore, reflecting increased investments into equities amid beneficial market conditions. The shift from cash holdings occurred alongside market gains, with Sensex and Nifty each rising by 2%. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.