Mumbai: Mutual fund companies are maintaining a cash level of 10-12 per cent on an average. Many of them are booking profits, too, after having deployed cash in the initial few months.
Although redemption pressures are nearly absent, the pipeline of liquidity in the form of NFOs has dried down. Fund houses are not seeing any fresh inflows and, hence, are curbing the buying support to the equity markets. On the other hand, insurance companies have remained net buyers in the market on account of huge collections from Ulip schemes. According to data from Value Research, Birla Sunlife and Tata Mutual Fund are held as much as 14 per cent and 20 per cent in cash, respectively, as of May 31. For UTI mutual fund and SBI mutual fund, cash levels stood at 14.56 per cent and 12.81 per cent. Reliance mutual fund maintained the highest cash level at 25.53 per cent
Although redemption pressures are nearly absent, the pipeline of liquidity in the form of NFOs has dried down. Fund houses are not seeing any fresh inflows and, hence, are curbing the buying support to the equity markets. On the other hand, insurance companies have remained net buyers in the market on account of huge collections from Ulip schemes. According to data from Value Research, Birla Sunlife and Tata Mutual Fund are held as much as 14 per cent and 20 per cent in cash, respectively, as of May 31. For UTI mutual fund and SBI mutual fund, cash levels stood at 14.56 per cent and 12.81 per cent. Reliance mutual fund maintained the highest cash level at 25.53 per cent
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