Equity Buying Moderates in June; Cash Holdings Fall to Calendar-Year Low: Mutual funds remained strong domestic buyers, investing ₹50,643 crore in equities during June 2026, though purchases moderated from ₹60,597 crore in May. Overall equity-oriented mutual fund cash holdings declined to ₹1.84 lakh crore in June from ₹1.89 lakh crore in May, marking the lowest level of the calendar year and indicating continued cash deployment as net equity purchases remained higher than net inflows into equity-oriented schemes.
AMC Cash Levels Fall to Calendar-Year Low: The average cash holding ratio across the top 20 AMCs declined to 4.53% in June from 4.79% in May, marking the lowest level of the calendar year. The continued reduction indicates greater cash deployment and a stronger preference to remain invested, reflecting improving market confidence while maintaining adequate liquidity to manage volatility and capture emerging opportunities.
PPFAS Mutual Fund holds the highest cash-to-AUM ratio at 16.10%, with ₹24,107 Cr in cash, reflecting a distinctly defensive stance and strong deployment flexibility. Quant MF follows closely with 15.67% cash holdings (₹14,007 Cr), while DSP MF (6.44%) and Axis MF (6.38%) also maintain elevated liquidity buffers.
Parag Parikh Flexi Cap Fund Leads in Absolute Cash Holdings : Parag Parikh Flexi Cap Fund holds the largest cash reserve at ₹23,630 crore (16.48% of AUM), followed by HDFC Mid Cap Fund at ₹7,990 crore (7.92%) and HDFC Flexi Cap Fund at ₹6,370 crore (5.98%).
Contra & Flexi Cap Funds Lead Cash Holdings: Contra Funds remain the most cash-heavy category with 9.59% of AUM or ₹7,002 Cr in cash, reflecting a cautious yet opportunity-driven stance. Flexi Cap Funds hold the largest absolute cash pile at ₹41,552 Cr, equivalent to 7.14% of AUM, providing significant flexibility for tactical deployment.
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