How Much Cash Do Mid and Small-Cap Funds Hold? Motilal Oswal Tops Midcaps; Bandhan Leads Small-Caps

As of October 2025, mid and small cap mutual funds have recorded varying levels of cash holding, as per Cafemutual Analysis. These figures offer insights into the liquidity strategy across different funds in a volatile market environment. Here’s a detailed breakdown of their cash allocations. 

Cash Holdings in Mid Cap Funds as of October 2025 

On average, mid cap mutual funds allocated 3.5% of their assets towards cash. Motilal Oswal Midcap Fund held the highest cash portion at 8%, followed by Axis Midcap Fund at 6.80%, and Tata Mid Cap Fund at 6.36%. Other notable funds include HDFC Mid Cap Fund (6.28%) and Bank of India Midcap Fund (6.01%). 

Sundaram mid cap fund and DSP mid cap fund reported cash allocations of 5.75% and 5.18%, respectively. At the lower end, WhiteOak Capital Mid Cap Fund held only 0.63% in cash. Out of the 30+ schemes reviewed, 15 funds held more than the segment average of 3.5%. 

Cash Positions in Small Cap Funds 

Small cap mutual fund schemes averaged 4.97% in cash holdings as of October 2025. Bandhan Small Cap Fund led with a 12.92% cash allocation. Quantum Small Cap Fund and Bank of India Small Cap Fund followed with 11.62% and 10.88%, respectively. HDFC Small Cap Fund and Tata Small Cap Funds registered 10.22% and 9.16% in cash. 

Other schemes such as SBI Small Cap Fund (8.18%) and DSP Small Cap Fund (7.27%) also maintained higher cash positions. At the lower end, Kotak Small Cap Fund and Union Small Cap Funds held 1.05% each. 

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List of Funds with Lower Cash Allocations 

Among mid cap funds, ICICI Prudential Mid Cap Fund (1.58%) and Aditya Birla Sun Life Midcap Fund (1.12%) were at the lower end. Similarly, in small caps, Invesco India Smallcap Fund (2.28%), Helios Small Cap Fund (2.17%), and Bajaj Finserv Small Cap Fund (2.14%) reported minimal cash exposure. 

Conclusion 

As of October 2025, mid cap mutual funds held an average of 3.5% in cash while small cap schemes maintained a higher average of 4.97%. Individual fund strategies contributed to wide differences, with some holding over 10% and others below 2% in cash assets. 

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.