Mutual funds reduced their cash holdings by over Rs 4,563 crore to Rs 1.83 lakh crore in June from Rs 1.87 lakh crore in May. Cash holdings fell to a 19-month low as fund houses increased investments in domestic equities amid a strong market rally, supported by easing geopolitical tensions and lower crude oil prices.
The benchmark indices, BSE Sensex and Nifty50, gained 2.98% and 2.06%, respectively, in June 2026.