Mutual Funds: Is there going to be a big fall in the stock market? Why are mutual funds sitting on piles of cash?

“If you also want to earn by investing in stock market Mutual Funds, then this news may increase your concern. At least 10 equity mutual funds have increased the cash held by them in July 2023. From the data of IT Mutual Funds This is understandable. The cash holding of these 10 mutual funds has increased to 8.82% of assets in July, whereas it was 4.76% in June.

Talking about the largest mutual fund company sitting on a pile of cash, Samco Mutual Fund has raised 20% cash in July. The company is sitting with about 21% of the assets that SAMCO has in cash. Quant Mutual Fund holds 15% of its assets in cash.

Shriram Mutual Funds is sitting with around 12% of its assets in cash. Groww Mutual Funds, JM Mutual Funds, Union Mutual Funds, PGIM India Mutual Funds and Franklin Templeton Mutual Funds have 4% to 7% of their assets in cash.

SAMCO Mutual Fund has rapidly increased its cash holdings in the recent past. In June, a total of 3% of his assets were in the form of cash, while in July it has increased to 21%.

At present, if we talk about cash available with mutual fund companies, Samco Mutual Fund has Rs 260 crore, Quant Mutual Fund has Rs 4663 crore, Grow Mutual Fund has Rs 11 crore, Shriram Mutual Funds has Rs 13 crore, JM Mutual Fund has Rs. 48 crore, Union Mutual Fund has 398 crore, PGIM India Mutual Fund has 1185 crore, Navi Mutual Fund has 24 crore, Edelweiss Mutual Fund has 436 crore and Franklin Templeton Mutual Fund has cash of Rs 4020 crore. Is.

Anticipating a major weakness in the stock market, these 10 Mutual Fund houses have accumulated cash worth more than Rs 11,000 crore. Fund managers managing mutual funds are allowed to keep a portion of their portfolio in cash so that they can buy shares when a client withdraws money or when investment opportunities arise in the market.

From the increasing amount of cash available with Mutual Funds, it also appears that the fund house is currently maintaining vigilance by looking at the situation in the stock market.

New fund houses like Samco Mutual Funds are attempting to conserve cash and buy shares at the right value in times of stock market weakness. An expert is saying that by watching the mutual fund house’s actions with approval, you need not take the decision to sell your investments and withdraw the amount.”

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