Large-cap mutual funds are holding the lowest cash levels in the last 12 months, signalling that fund managers are deploying a greater portion of their money into equities instead of keeping it on the sidelines.
According to Dolat Capital's latest monthly mutual fund report, active equity schemes' assets under management (AUM) rose 4% to Rs 35.6 trillion in June from Rs 34.3 trillion in May. While total cash holdings remained unchanged at around Rs 1.2 trillion, cash as a percentage of AUM declined to 3.4%, the lowest level in the past one year with large cap funds holding the least cash.
