SBI, PPFAS Mutual Fund Among 5 AMCs with Over ₹10,000 Crore Cash in Portfolio in November

In November, major Indian mutual fund houses continued to maintain large cash holdings in their portfolios. SBI Mutual Fund and PPFAS Mutual Fund were 2 of the 5 asset management companies (AMCs) with cash allocations exceeding ₹10,000 crore, reflecting capital reservation strategies among fund managers, as per the ACE Mutual Fund report. 

Cash Allocations of Top Fund Houses in November 

HDFC Mutual Fund led the group with ₹30,287 crore in cash, forming 6.55% of its total assets under management (AUM). SBI Mutual Fund followed closely with ₹30,252 crore in cash, translating into 3.90% of its total AUM. PPFAS Mutual Fund held ₹28,991 crore, representing 21.37% of its AUM of ₹1,06,000 crore. 

ICICI Prudential Mutual Fund also maintained a significant liquidity buffer with ₹25,904 crore, accounting for 5.02% of its overall AUM of ₹4,90,000 crore. Quant Mutual Fund held ₹12,082 crore in cash, which stood at 13.91% of its AUM of ₹74,772 crore. 

High Cash Holdings Based on AUM Percentage 

When ranked by percentage to AUM, PPFAS and Samco Mutual Funds led with 21.37% and 19.03% respectively. Quant Mutual Fund followed with 13.91%, while WhiteOak Capital Mutual Fund stood at 11.71%. These figures indicate a cautious stance with substantial capital kept liquid. 

Read More: Mutual Fund SIP Stoppage Ratio Surges to 76% in November as Monthly Inflows Dip Marginally! 

Overall Market Cash Allocation Trends 

The mutual fund industry collectively reduced its cash allocation by ₹7,149 crore in November. The total stood at ₹2,01,000 crore against ₹2,09,000 crore in October. The overall cash as a percentage of AUM also declined to 4.68% from 4.94% in the previous month. 

JioBlackRock Mutual Fund, a new entrant, had ₹62.48 crore in cash which was 2.18% of its total AUM. This smaller ratio reflects its nascent stage in investment operation scale compared to established players. 

Conclusion 

SBI, PPFAS, and other top mutual funds continued to maintain notable cash reserves in November. While the overall industry reduced its liquidity slightly, prominent funds opted for varied cash positioning depending on their strategies. 

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.