Mutual Funds Raise Cash Holdings To ₹2.09 Lakh Crore in February as Market Volatility Increases

According to ACE MF data, mutual funds added ₹3,544 crore to their cash holdings in February 2026, bringing the total to ₹2.09 lakh crore.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Cash Allocation Rises Across Mutual Funds

The rise in cash holdings happens when the market is unstable. In February, the benchmark indices Nifty 50 and BSE Sensex were still volatile, but they both ended the month with gains of 1.4% and 0.7%, respectively.

Cash allocation as a percentage of total assets under management (AUM) stood at 4.89% in February, compared with 4.87% in January. The total equity AUM of mutual funds was recorded at ₹42.86 lakh crore.

Fund Houses With Highest Cash Holdings

Out of 49 asset management companies (AMCs), six held more than ₹10,000 crore in cash. SBI Mutual Fund reported the highest cash holding at ₹34,704 crore, accounting for 4.5% of its total AUM.

PPFAS Mutual Fund had ₹29,740 crore in cash, which was 21.19% of its total AUM. The Parag Parikh ELSS Tax Saver Fund, Parag Parikh Flexi Cap Fund, and Parag Parikh Large Cap Fund all had a lot of cash in their portfolios. For example, the flexi cap fund had ₹1.05 lakh crore in cash in February.

Other Major Fund Houses

ICICI Prudential Mutual Fund and HDFC Mutual Fund held ₹23,815 crore and ₹23,578 crore in cash, respectively.

Axis Mutual Fund reported ₹15,296 crore in cash, which was 7.73% of its total AUM. The Quant Mutual Fund had ₹18,245 crore, which was 16.43% of its total AUM.

Kotak Mutual Fund had ₹5,652 crore in cash, followed by Bandhan Mutual Fund with ₹5,806 crore.

Cash Holdings in Other Funds

The Mirae Asset Mutual Fund had ₹1,933 crore in cash, which was 11.6% of its AUM. Edelweiss Mutual Fund reported ₹1,183 crore in cash, while Sundaram Mutual Fund and Abakkus Mutual Fund held ₹208 crore each.

Among smaller fund houses, Helios Mutual Fund and Groww Mutual Fund held ₹166 crore and ₹146 crore in cash, respectively. JioBlackRock Mutual Fund reported ₹18.51 crore, while Unifi Mutual Fund held ₹8.10 crore. Angel One Mutual Fund reported ₹0.19 crore in cash holdings.

SIF Cash Holdings

According to ACE MF data, within specialised investment funds (SIFs), Diviniti SIF by ITI Mutual Fund held ₹119 crore in cash, while the SIF by ICICI Prudential Mutual Fund held ₹173 crore.

Data for Quant Mutual Fund and Tata Mutual Fund SIFs was not available for February.

Fund managers are permitted to maintain a portion of portfolios in cash to meet redemption requirements and deploy funds when investment opportunities arise, with total cash holdings across mutual funds reaching ₹2.09 lakh crore in February 2026.