Strong Buying – Equity MFs Deploy Cash: Equity mutual funds ramped up deployment in September 2025, investing ₹46,442 crore in equities. Overall cash holdings stood at ₹1.99 lakh crore, marginally higher than ₹1.98 lakh crore in August, reflecting an active and opportunity-driven allocation strategy.
AMC Cash Ratio Falls Further in September: The average cash holding ratio among the top 20 AMCs slipped to 4.57% in September from 4.82% in August, keeping overall levels below the 5% mark. The decline reflects strong equity buying and reduced inflows on a month-on-month basis.
PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio at 22.46% (₹28,152 Cr), reflecting a distinctly conservative stance and readiness for tactical deployment. Quant MF follows with a notable 10.90% (₹9,315 Cr), while HDFC MF maintains 6.23% (₹26,851 Cr), well above the industry average.
Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund continues to top the list with 22.71% of AUM in cash (₹26,129 Cr), followed closely by SBI Contra Fund at 21.57% (₹10,064 Cr), underscoring a strong liquidity stance. HDFC Flexi Cap Fund holds 11.38% (₹9,327 Cr), signalling ample readiness to deploy funds when valuations turn attractive.
Contra & Flexi Cap Funds Lead the Liquidity Charts: Contra Funds top the list with the highest cash-to-AUM ratio of 15.00% (₹10,661 Cr), underscoring a highly defensive and opportunistic approach amid market uncertainty. Flexi Cap Funds follow with 9.74% (₹49,502 Cr), indicating fund managers’ continued focus on liquidity and tactical flexibility to navigate volatile conditions.
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