look news india
Mumbai: Despite high valuations in Indian equities, it can be said that domestic mutual funds are increasing equity investments. The amount of cash with mutual funds has decreased in March compared to January and February of the current year.
Cash with fund houses stood at 4.70 per cent of total assets under management (AUM) in March, compared to 4.82 per cent in February.
Association of Mutual Funds in India (AMFI) sources said liquidity of equity-based mutual funds declined to Rs 1.33 lakh crore at the end of March.
Cash in hand stood at 4.20 per cent of total AUM as of December 2023, which increased to 4.36 per cent in January and 4.82 per cent in February, but declined again in March, indicating an increase in equity investments by fund houses.
Of the 42 mutual funds operating in March, 26 increased their cash allocation while 16 reduced their cash allocation in March.
Net inflows into the equity mutual fund category fell 16 per cent to Rs 22,633.15 crore in March from Rs 26,865.78 crore in February.