Athira Sethu
Kochi, 16 May 2026
Mutual fund houses adopted a cautious stance in April despite a sharp rally in equity markets following the ceasefire announcement. While benchmark indices such as the Sensex and Nifty posted strong gains alongside a surge in broader markets, several asset management companies (AMCs) chose to increase cash holdings to preserve liquidity and prepare for potential market volatility. Data from PrimeMF showed that 28 fund houses collectively raised cash holdings by Rs 14,540.63 crore during the month, signalling a tactical balancing act between participating in the rally and maintaining flexibility for future opportunities.
| Market Performance in April | Percentage Gain |
| Sensex | 6.9% |
| Nifty | 7.5% |
| BSE Midcap | 13.81% |
| BSE Smallcap | 19.61% |
| Fund Houses Increasing Cash Holdings | Increase in Cash Holdings (Rs crore) |
| ICICI Prudential Mutual Fund | 5,557 |
| DSP Mutual Fund | 3,131 |
| HDFC Mutual Fund | 2,432 |
| SBI Mutual Fund | 2,021 |
| Total Increase by 28 Fund Houses | 14,540.63 |
| Fund Houses Reducing Cash Holdings | Cash Deployed (Rs crore) |
| Axis Mutual Fund | 3,844 |
| HSBC Mutual Fund | Above 500 |
| Kotak Mahindra Mutual Fund | Above 500 |
| Samco Mutual Fund | Above 500 |
| PPFAS Mutual Fund | Above 500 |
| Industry Cash Position | March | April |
| Overall Mutual Fund Industry Cash Holdings as % of Total Equity Assets | 2.55% | 2.57% |
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