Indian Mutual Funds Boost Cash Reserves to ₹1.90 Lakh Crore
By Market Desk
Indian mutual funds increased cash holdings to ₹1.90 lakh crore in July, recovering from a 19-month low. PPFAS Mutual Fund leads with significant allocation.
Indian mutual funds significantly increased their cash holdings in July 2026, with total reserves climbing by over Rs 7,856 crore. This surge brought the total cash in portfolios to Rs 1.90 lakh crore, according to ACE MF data.
The rise marks a recovery from June’s 19-month low of Rs 1.83 lakh crore. Cash holdings constituted 4.6% of the mutual funds’ total assets during the reporting period.
Top Cash Holders
Among individual fund houses, PPFAS Mutual Fund held the highest cash reserves in July, allocating a substantial portion of its Assets Under Management (AUM) to liquid assets.
- PPFAS Mutual Fund: Rs 25,291 crore (16.32% of AUM)
- SBI Mutual Fund: Rs 24,415 crore (3.08% of AUM)
- HDFC Mutual Fund: Rs 23,173 crore (4.60% of AUM)
- ICICI Prudential Mutual Fund: Rs 21,159 crore (3.69% of AUM)
- Quant Mutual Fund: Rs 14,739 crore (16.16% of AUM)
- Axis Mutual Fund: Rs 12,089 crore (5.82% of AUM)
PPFAS Leads With Flexi Cap Fund Allocation
PPFAS Mutual Fund’s significant cash position was primarily driven by its Parag Parikh Flexi Cap Fund. This specific fund alone accounted for a substantial portion of the firm’s total cash.
- Parag Parikh Flexi Cap Fund: Rs 24,793 crore in cash
- Parag Parikh ELSS Tax Saver Fund: Rs 490 crore in cash
- Parag Parikh Large Cap Fund: Rs 7 crore in cash
Fund managers strategically hold cash to facilitate investor redemption requests and to capitalize on attractive investment opportunities as they emerge in the market.