Mutual funds increase cash allocation by over Rs 14,500 crore in 2025; 5 new AMCs join in

Mutual funds have increased their cash allocation by Rs 14,539 crore in 2025 to Rs 2.01 lakh crore in November this year (last available data), compared to Rs 1.87 lakh crore in December 2024, an analysis by ETMutualFunds showed.

In December 2024, there were 43 asset management companies (AMCs), which increased to 48 AMCs as of November 2025, indicating that five new AMCs had entered the mutual fund industry.

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The five new AMCs that entered the mutual fund industry were Angel One Mutual Fund, Capitalmind Mutual Fund, JioBlackRock Mutual Fund, The Wealth Company Mutual Fund, and Unifi Mutual Fund.

On a yearly basis, out of 43 AMCs, 17 AMCs have increased their cash allocation, whereas 26 have reduced their cash allocation.

Among the 17 AMCs that have increased their cash allocation, PPFAS Mutual Fund and Quant Mutual Fund were on top. PPFAS Mutual Fund increased its cash allocation by Rs 10,744 crore from Rs 18,247 crore in December 2024 to Rs 28,991 crore in November 2025.

Quant Mutual Fund increased its cash allocation by Rs 6,071 crore to Rs 12,082 crore in November 2025 from Rs 6,010 crore in December 2024. HDFC Mutual Fund and ICICI Prudential Mutual Fund increased cash allocation by Rs 5,039 crore and Rs 2,427 crore, respectively, in the said time period.

Helios Mutual Fund increased the cash allocation by Rs 146 crore to Rs 211 crore in November 2025. NJ Mutual Fund was the last one to increase its cash allocation during the specified time period. The fund house increased its cash allocation by Rs 21 lakh to Rs 13.05 crore in November 2025.

Axis Mutual Fund reduced its cash holdings by Rs 6,393 crore to Rs 8,659 crore in November 2025 from Rs 15,052 crore in December 2024. This was followed by SBI Mutual Fund, which reduced its cash allocation by Rs 1,515 crore to Rs 30,252 crore in November 2025 from Rs 31,767 crore in December 2024.

Canara Robeco Mutual Fund and Sundaram Mutual Fund reduced their cash holding by Rs 502 crore and Rs 470 crore, respectively, in the said time period.

Nippon India Mutual Fund, Mirae Asset Mutual Fund, and Kotak Mutual Fund reduced their cash allocation by Rs 435 crore, Rs 429 crore, and Rs 422 crore, respectively, in the said time period.

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Trust Mutual Fund and Groww Mutual Fund reduced their cash allocation by Rs 8.04 crore and Rs 1.14 crore, respectively.

As of November 2025, JioBlackRock Mutual Fund had around 62.48 crore cash in its portfolio, followed by Capitalmind Mutual Fund which had Rs 22.43 crore cash in its portfolio. The Wealth Company Mutual Fund and Unifi Mutual Fund had Rs 17.66 crore and Rs 16.08 crore cash, respectively. And lastly, Angel One Mutual Fund had Rs 0.08 crore cash in its portfolio.

Fund managers are allowed to keep a part of their portfolio in cash to meet events like redemptions or make investments when they see a possible opportunity in the market.

Note, the last available portfolio was of November in the current calendar year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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