Mutual Funds Cash Allocation Drops to 4.1% of AUM in July 2026; PPFAS and Quant Maintain Highest Holdings

The allocation of cash by mutual funds dipped to 4.1% of Assets Under Management (AUM) in July 2026, as per The Moneycontrol news citing data from ACE MF.  

Among these, PPFAS and Quant Mutual Funds retained the largest cash holdings, with significant changes observed across various funds compared to previous months and years. 

Mutual Fund Cash Holdings in July 

The cash allocation in mutual funds reduced marginally to 4.1% of AUM from 4.13% in June 2026. Industry equity cash holdings increased to ₹1.91 lakh crore, up from ₹1.83 lakh crore previously. This compares to a cash allocation of 5.09% a year ago.  

PPFAS Mutual Fund led with a cash holding of 16.32% of its equity assets in July 2026, increasing from 16.10% in June, amounting to ₹25,291 crore.  

Quant Mutual Fund followed by 16.16%, up from 15.67%, holding ₹14,740 crore. 

Comparison Across Funds 

WhiteOak Capital Mutual Fund ranked third, although its cash allocation decreased slightly to 11.56% from 12.06%, with holdings up to ₹3,335 crore.  

Bank of India Mutual Fund experienced an increase to 8.78% from 6.09%, raising cash holdings to ₹1,039 crore.  

Conversely, Samco Mutual Fund reduced its allocation from 10.97% to 8.06%, with holdings dropping to ₹149 crore. 

Year-on-Year Trends and Large Fund Adjustments 

Year-on-year, the industry has reduced its cash relative to equity assets, from 5.09% in June 2025 to 4.09% in July 2026. PPFAS decreased its cash allocation from 19.65% last year to 16.32% this year.  

HDFC Mutual Fund witnessed a reduction from 6.43% to 4.60% and ICICI Prudential Mutual Fund dropped from 5.82% to 3.69%. However, Quant increased its cash allocation significantly from 7.25% the previous year to 16.16% in July 2026. 

Read More: Mutual Fund SIP Stoppage Ratio Falls for 3rd Month to 81.87% in July 2026 as New SIPs Rise! 

Conclusion 

In July 2026, mutual fund cash allocation decreased slightly to 4.1% of AUM. PPFAS led with 16.32%, followed by Quant at 16.16%. A year earlier, the allocation was 5.09%. Different mutual funds showed varied trends in cash allocations over the year. 

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.