Even though the stock market saw a strong rebound in March — with Sensex up 5.5% and Nifty 50 gaining 6.2% — many mutual fund managers remained cautious, holding back from aggressive buying.
According to Prime Database MF, 64% of mutual fund houses actually reduced their cash levels in active equity schemes. Overall, the cash holding dipped slightly to 5.1% in March from 5.3% in February.
Yet, some of the country’s biggest mutual funds increased their cash positions, signaling caution or preparation for better opportunities ahead. Notably:
ICICI Prudential MF increased its cash holding to 6.63% in March from 5.44% in January.
SBI MF also raised cash levels to 3.58%, up from 3.51% in January.
Motilal Oswal MF bumped up cash to 15.75%, from 11.17% in January.
PPFAS MF steadily rose to 10.69%.
DSP MF slightly increased to 5.81%.
Franklin Templeton MF maintained over 4.30%.
Top mutual funds are holding more cash, which shows that fund managers are being careful. They might be waiting for better prices or more clarity before investing. Even though overall cash levels dropped a bit, big fund houses still seem unsure about the recent market rally.
Source: Prime Database MF | Data as of March 2025
