PPFAS Mutual Fund, HDFC Mutual Fund Among Six AMCs With ₹10,000 Crore-Plus Cash Holdings in March 2026

Cash allocation within mutual fund portfolios often reflects fund managers’ positioning amid changing market conditions. 

In March 2026, despite a decline in overall cash holdings, several asset management companies (AMCs) maintained sizeable cash reserves, as per The Economic Times report.

This came against the backdrop of market volatility and a correction in benchmark indices, prompting selective equity deployment.

Overall Cash Holdings Decline

Mutual fund cash holdings fell by around 12% month-on-month to ₹1.86 lakh crore in March, compared with ₹2.09 lakh crore in February.

The reduction coincided with an approximate 11% decline in benchmark indices, as fund managers utilised available cash to increase equity exposure during the market correction, according to the news report.

PPFAS Mutual Fund Holds Significant Cash Allocation

PPFAS Mutual Fund reported cash holdings of approximately ₹29,327 crore, accounting for 21.76% of its total assets. 

Within its schemes, Parag Parikh Flexi Cap Fund held ₹28,698 crore in cash, while Parag Parikh ELSS Tax Saver Fund and Parag Parikh Large Cap Fund maintained smaller cash positions.

1. SBI Mutual Fund Maintains Cash Buffer

SBI Mutual Fund held ₹27,463 crore in cash, representing 3.98% of its total AUM. The allocation indicates a measured approach to liquidity while continuing participation in equity markets.

2. HDFC Mutual Fund’s Cash Position

HDFC Mutual Fund reported ₹21,352 crore in cash, which accounted for 5.08% of its total AUM. The fund house had an equity AUM of ₹3.99 lakh crore as of March 2026, reflecting its scale in the equity segment.

3. ICICI Prudential Mutual Fund Allocation

ICICI Prudential Mutual Fund held ₹17,289 crore in cash during March, equivalent to 3.53% of its total AUM. Its equity AUM stood at ₹4.72 lakh crore, indicating substantial exposure to equity markets alongside liquidity reserves.

4. Axis Mutual Fund and Quant Mutual Fund

Axis Mutual Fund maintained cash holdings of ₹16,469 crore, representing 9.31% of its AUM. Quant Mutual Fund reported ₹10,004 crore in cash, accounting for 13.82% of its total assets, reflecting relatively higher cash proportions within its portfolio.

Read More: Parag Parikh Flexi Cap Fund, HDFC Flexi Cap Fund and SBI Equity Hybrid Fund dominate AUM rankings.

Conclusion

While overall cash levels in mutual funds declined during March, several AMCs continued to hold sizeable reserves. This suggests a balanced approach, where fund managers deployed capital selectively while retaining liquidity to navigate ongoing market fluctuations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities 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 in the securities market are subject to market risks, read all the related documents carefully before investing.