SBI Small Cap and Bandhan Small Cap Among 5 Small Cap Funds with Highest Cash Holding

In June 2026, several small cap funds were noted for maintaining substantial cash reserves in their portfolios. This approach helps in meeting potential redemption requirements and leveraging favourable investment scenarios. 

Top Small Cap Funds by Cash Holding 

A study of small cap fund portfolios from April revealed that 5 funds reported significant cash holdings. For fund managers, holding cash is strategic in addressing redemption demands and capitalising on opportunities. 

The Bandhan Small Cap Fund led with a cash reserve of 13.2% of its total assets. Right behind it, the Groww Small Cap Fund held cash amounting to 13% of its assets. 

SBI Small Cap and HDFC Small Cap Funds 

SBI Small Cap Fund maintained a 9.8% cash holding, showcasing a balanced approach between liquid assets and investments. Following closely, the HDFC Small Cap Fund reported a cash holding of 9.6%. 

Quantum Small Cap Fund's Asset Position 

The Quantum Small Cap Fund held cash reserves equivalent to 8.5% of its total assets, reflecting another example of managed liquidity across funds. 

Read More: Mutual Fund Industry Welcomes 3 Lakh New Investors in April 2026! 

Cash Holding Strategy 

Maintaining cash within portfolios allows fund managers to react swiftly to market changes. The highlighted funds exemplify this strategy, balancing growth potential with liquidity needs. 

Conclusion 

The review of these small cap funds highlights their strategic approach towards cash holdings, providing a level of liquidity while remaining poised for investment opportunities. Fund managers continue to navigate fluctuating market conditions while balancing investor needs for both returns and liquidity. 

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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.