Mutual Funds Increase Cash Allocation by ₹1,139 Crore in September, Reaching ₹1.99 Lakh Crore

In September 2025, Indian mutual funds saw a significant bump in their cash holdings, with allocations increasing by ₹1,139 crore to reach ₹1.99 lakh crore. This shift indicates strategic liquidity management amid changing market dynamics.

Mutual Funds' Cash Position Sees Uptick in September

Mutual funds raised their cash allocation from ₹1.98 lakh crore in August to ₹1.99 lakh crore in September 2025. This represents 4.92% of the total assets under management (AUM), slightly down from 4.99% in the previous month. The total equity AUM stood at ₹40.43 lakh crore during this period.

Top Fund Houses by Cash Allocation

SBI Mutual Fund reported the highest cash reserves at ₹31,272 crore, equating to 4.28% of its total AUM of ₹6.99 lakh crore. PPFAS Mutual Fund followed closely with ₹28,152 crore in cash, which accounted for a substantial 22.46% of its total AUM.

Major Players with Over ₹10,000 Crore in Cash

HDFC Mutual Fund and ICICI Prudential Mutual Fund held ₹26,851 crore and ₹25,571 crore in cash, respectively. Axis Mutual Fund stood at ₹10,619 crore, or 5.34% of its total assets. Quant Mutual Fund allocated ₹9,315 crore, roughly 10.90% of its AUM. Other notable allocations included Kotak Mutual Fund and Motilal Oswal Mutual Fund with ₹6,510 crore and ₹5,926 crore, respectively.

Read More: Flexicap Funds AUM Surpasses ₹5 Trillion Milestone on Record Inflows!

New Entrants and Smaller Fund Houses

Several newer and smaller mutual fund houses maintained modest cash allocations. Capitalmind Mutual Fund held ₹20.55 crore, while Unifi One Mutual Fund had ₹7 crore, and Angel One Mutual Fund had ₹0.11 crore. Among these, Samco Mutual Fund recorded the highest proportion of cash at 24.90% of its AUM.

Conclusion

The rise in cash allocation to ₹1.99 lakh crore underscores a strategic positioning by mutual funds to handle volatility and pursue investment openings. Larger players led the move, with varied strategies seen among newer funds.

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.

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