Mutual Funds’ Cash Pile Hits ₹1.87 Lakh Crore in December 2024: Key Trends and Insights

The mutual fund industry witnessed a notable increase in cash holdings in December 2024. The total cash pile of mutual funds rose by ₹6,937 crore on a monthly basis, from ₹1.80 lakh crore in November to about ₹1.87 lakh crore in December. This rise highlights changing trends in cash allocation and equity asset management among fund houses.

Cash Allocation Trends

The cash allocation as a percentage of total assets under management (AUM) increased from 4.98% in November to 5.17% in December 2024. The total equity AUM in December stood at an impressive ₹36.29 lakh crore.

Among the 43 mutual fund houses, five held cash reserves exceeding ₹10,000 crore.

Top Fund Houses and Their Cash Allocations

1. SBI Mutual Fund
   • Largest fund house by AUM.
   • Cash allocation: ₹31,767 crore (4.61% of total AUM).
   • Equity AUM: ₹6.57 lakh crore.
2. HDFC Mutual Fund
   • Cash allocation: ₹25,248 crore (6.74% of total AUM).
3. ICICI Prudential Mutual Fund
   • Cash allocation: ₹23,477 crore.
   • Equity AUM: ₹3.77 lakh crore.
4. Axis Mutual Fund
   • Cash allocation: ₹15,052 crore (7.69% of total AUM).
5. PPFAS Mutual Fund
   • Cash allocation: ₹8,247 crore.
   • Highest percentage allocation: 19.82% of total AUM.

Fund Houses with Minimal Cash Holdings

Several fund houses maintained relatively low cash reserves:

• Edelweiss Mutual Fund: ₹741 crore.
• Bank of India Mutual Fund: ₹650 crore.
• Old Bridge Mutual Fund: ₹133 crore.
• Trust Mutual Fund: ₹108 crore.
• NJ Mutual Fund: ₹12.84 crore, with the lowest percentage of total AUM at 0.57%.

Percentage-Based Cash Allocations

While absolute figures provide one perspective, percentage-based cash allocations offer insight into fund houses’ strategies.

• PPFAS Mutual Fund had the highest cash allocation at 19.82% of AUM.
• Samco Mutual Fund followed closely with 18.94% of AUM in cash.
• NJ Mutual Fund recorded the lowest at just 0.57%.

Equity AUM Highlights

The equity AUM figures revealed significant diversity among fund houses:

• SBI Mutual Fund led the pack with ₹6.57 lakh crore.
• ICICI Prudential Mutual Fund came in second with ₹3.77 lakh crore.
• At the lower end, Shriram Mutual Fund reported ₹367 crore in equity AUM.

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/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.