Mutual Funds’ Cash Pile Hits ₹1.87 Lakh Crore in December 2024: Key Trends and Insights

The mutual fund industry witnessed a notable increase in cash holdings in December 2024. The total cash pile of mutual funds rose by ₹6,937 crore on a monthly basis, from ₹1.80 lakh crore in November to about ₹1.87 lakh crore in December. This rise highlights changing trends in cash allocation and equity asset management among fund houses.

Cash Allocation Trends

The cash allocation as a percentage of total assets under management (AUM) increased from 4.98% in November to 5.17% in December 2024. The total equity AUM in December stood at an impressive ₹36.29 lakh crore.

Among the 43 mutual fund houses, five held cash reserves exceeding ₹10,000 crore.

Top Fund Houses and Their Cash Allocations

1. SBI Mutual Fund
   • Largest fund house by AUM.
   • Cash allocation: ₹31,767 crore (4.61% of total AUM).
   • Equity AUM: ₹6.57 lakh crore.
2. HDFC Mutual Fund
   • Cash allocation: ₹25,248 crore (6.74% of total AUM).
3. ICICI Prudential Mutual Fund
   • Cash allocation: ₹23,477 crore.
   • Equity AUM: ₹3.77 lakh crore.
4. Axis Mutual Fund
   • Cash allocation: ₹15,052 crore (7.69% of total AUM).
5. PPFAS Mutual Fund
   • Cash allocation: ₹8,247 crore.
   • Highest percentage allocation: 19.82% of total AUM.

Fund Houses with Minimal Cash Holdings

Several fund houses maintained relatively low cash reserves:

• Edelweiss Mutual Fund: ₹741 crore.
• Bank of India Mutual Fund: ₹650 crore.
• Old Bridge Mutual Fund: ₹133 crore.
• Trust Mutual Fund: ₹108 crore.
• NJ Mutual Fund: ₹12.84 crore, with the lowest percentage of total AUM at 0.57%.

Percentage-Based Cash Allocations

While absolute figures provide one perspective, percentage-based cash allocations offer insight into fund houses’ strategies.

• PPFAS Mutual Fund had the highest cash allocation at 19.82% of AUM.
• Samco Mutual Fund followed closely with 18.94% of AUM in cash.
• NJ Mutual Fund recorded the lowest at just 0.57%.

Equity AUM Highlights

The equity AUM figures revealed significant diversity among fund houses:

• SBI Mutual Fund led the pack with ₹6.57 lakh crore.
• ICICI Prudential Mutual Fund came in second with ₹3.77 lakh crore.
• At the lower end, Shriram Mutual Fund reported ₹367 crore in equity AUM.

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