Mutual funds deploy dry powder to buy the dip in March, shows data

Cash holdings at top 20 asset management companies decline to 5% for month from 6.2% in Feb

Cash holdings with the top 20 mutual fund (MF) houses dropped to a 10-month low of 5 per cent in March as fund managers decided on equities, with the benchmark equities falling to their lowest levels in five months in early March.

According to a note by Motilal Oswal Financial Services (MOFSL), cash holdings as of end-February were at 6.2 per cent — the highest since May 2021.

“Equity market valuations are more reasonable today than they were in March last year. Consequently, we have lowered the cash component across most schemes,” said Anish Tawakley, deputy chief investment