Top 10 Mutual Fund with Most Cash Holding…!! 

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Top 10 Mutual Fund with most cash holding

The mutual Fund manager always faces the hard choice of investing the right amount of cash in a scheme. Every mutual fund scheme can have a tiny portion of cash in their portfolio, which is basic tenets of stock investing. This helps in allowing to meet redemption or buy opportunity that fund may come across any day. But this also helps a manager time the time, if they have a large amount of cash by adjusting the level of cash in their portfolio. 

In case, if a fund manager believes that the market is quite high or bull run, then they stay away from investing and hold a lot amount of cash to invest after the market correction. In case, if they think that the market is in bottomout or is poised for a significant rise then they reduce the cash pile. 

But the level of cash also depends upon the type of mutual fund. In the case of Equity mutual fund, the fund maintains a low level of cash as these schemes are mainly for long term. In the case of debt fund, the fund manager maintains a high level of cash, as these schemes are mainly for the short term. Here is a list of top mutual fund with most cash holding, according to live mint:  

        Mutual Fund                                                                         Cash Holding
IDBI Long Term Value                                                       47.88%
Tata Small Cap  30.73% 
Axis Small Cap                                                                  22.36%
Parag Parikh Long Term Equity                                        22.13%
HDFC Retirement Saving Equity                                     19.67%
Indiabulls discovery fund                                                19.63%
IDBI Diversified Equity                                                19.19%
Axis MidCap                                                                  19.13%
Axis MultiCap                                                                18.98%
Axis BlueChip                                                                17.92%


Looking at the current trend, most of the mutual funds are increasing their cash share in the portfolio. But as an investor always remains aloof about how these cash holding impact them. The changing level of cash with a period not only affects the fund’s performance, but also indicates the ability of the fund manager to align himself to various market moods. The more realistic perspective of the fund manager, the better will be the results. But if the fund manager simply holds on to cash for prolonged periods, the investor still ends up paying the fund manager for merely holding cash, what they could’ve taken out that money and invested it in other assets. There is no an ideal percentage how much cash, a fund should hold. But what puts an investor into jittery is that these high cash holding practices lead to unfairly charging them.  

The ideal solution will require a lot more thinking and inputs from different industry stakeholders, but it should be doing something that holds fund managers accountable the reason to hold cash. There are other options for investors to invest such as exchange traded funds (ETF’s), which have similarexposures to broad indices, themes and strategies, but don’t hold cash for a long period of time.  


If you are looking to invest in mutual funds, hop on to www.gulaq.com or you can talk to the experts.  


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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1 Comment
  1. C HARA GOPAL says

    Very good informative. Very updated information .

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