The cash balances of equity mutual fund schemes dropped from Rs 1.85 lakh crore in July to Rs 1.76 lakh crore in August as several AMCs capitalized on block deal opportunities, according to a report by Nuvama Institutional Equities.
Motilal Oswal MF led the deployment and deployed around Rs 6,300, as its midcap scheme participated in Eternal’s Ant Block, bringing its cash down from Rs 8,200 crore to Rs 2,000 crore, it said and added this was followed by SBI MF and ICICI Prudential MF, which deployed Rs 3,100 crore and Rs 1,900 crore respectively, reflecting a broader shift toward equity allocation.
Selective Caution Amid Deployments
Meanwhile, a few schemes added to their cash buffers. Kotak MF increased cash by Rs 2,700 crore followed by Nippon India MF with Rs 1,600 crore, and PPFAS MF with Rs 1,500 crore, taking its already elevated cash ratio from 20.9% to 21.8%, Nuvama said. “These additions suggest selective caution amid the broader deployment trend.”
Stock-Level Shifts Across Market Caps
In pure equity market cap schemes, Infosys, M&M, and HDFC Bank were top large cap additions and reduction was seen in HUL, Avenue Supermarts and REC. One97 Communications, L&T Finance, and Thermax were the top added midcap stocks and Clean Science, Home First Finance, and Syrma SGS were top small cap additions.