Mutual Funds' Cash Pile Grew Faster Than Assets Driven By NFOs In June

The cash pile held by actively managed equity mutual fund schemes grew faster than the value of assets under management during June.

The cash pile grew by over 10% to over Rs 1.18 lakh crore, as per ACE MF data. Meanwhile, the AUM growth stood at just two basis points below 9%.

However, excluding new fund offering made during the month, the cash reserved recorded a growth of 4.68%.

The value of assets held was at Rs 27.7 lakh crore as of month-end, with the cash holdings making up 4.28% of this amount—the highest so far this fiscal.

As of June end, cash reserves stood at over 10% for 12 schemes, with the highest figure of approximately 15.3% for the Quantum Small Cap Fund, followed by the Quantum ELSS Tax Saver Fund at 14.3%.

Despite being the scheme with the highest allocation to cash, the Quantum Small Cap Fund has seen its cash reserves decline since the month of April, while the Quantum ELSS Tax Saver Fund has steadily grown over the same period.

The newly launched HDFC Manufacturing Fund recorded the third highest allocation in cash at 13.4%, marginally below 13.5% last month.

It had seen the third-highest collections ever received by a new fund offering, after being launched during the month of May.

Among asset management companies with the highest holdings in cash held across active equity schemes, Quantum Mutual Fund took the top spot, followed by Parag Parikh Financial Advisory Services.

Baroda BNP Paribas Mutual Fund took the third spot owing to the newly launched Baroda BNP Paribas Manufacturing Fund.