The number
On 31 August 2026, equity mutual funds held 3.34% of their net assets in cash, ₹1,30,312 crore in all. The median scheme held 2.67%.
"Cash" here is what the AMCs report as cash and equivalents: TREPS and reverse repo (overnight lending against government securities), cash at bank, margin money and net receivables. Add short-term debt such as treasury bills and the figure rises to 4.00%.
The data is the AMCs' monthly portfolio disclosures for 31 August 2026, read for the 585 schemes in SEBI's equity categories for which we have a net asset figure, one row per scheme. Index funds, ETFs and hybrids are not included. Percentages across schemes are weighted by size.
How it is spread
- 104 schemes held under 1% in cash.
- 106 held 5% or more.
- 20 held 10% or more.
- 20 showed a negative cash line, meaning payables (for shares bought but not yet settled, or redemptions owed) exceeded cash. The lowest was −7.03%.
Most equity funds, in other words, are close to fully invested. A handful are not.
By category
| Category | Schemes | Cash (weighted) | Median scheme | Cash (₹ crore) |
|---|---|---|---|---|
| Contra | 5 | 6.67% | 7.09% | 5,061 |
| Small Cap | 35 | 6.59% | 3.96% | 30,534 |
| Focused | 28 | 4.57% | 4.46% | 8,628 |
| Mid Cap | 34 | 3.73% | 2.19% | 20,160 |
| Dividend Yield | 12 | 3.23% | 3.77% | 1,032 |
| Sectoral / Thematic | 252 | 3.01% | 2.62% | 17,099 |
| Value | 23 | 2.96% | 3.19% | 4,226 |
| Flexi Cap | 45 | 2.93% | 2.74% | 17,941 |
| ELSS | 49 | 2.59% | 2.64% | 6,244 |
| Multi Cap | 32 | 2.15% | 2.73% | 5,514 |
| Large & Mid Cap | 35 | 1.91% | 2.19% | 7,078 |
| Large Cap | 35 | 1.64% | 1.88% | 6,795 |
Small-cap funds stand out twice. They held the most cash in rupees of any category, and their weighted figure (6.59%) is well above their median (3.96%). That gap means the cash is concentrated in the large small-cap funds, not spread evenly.
Large-cap funds hold the least. Their shares can be bought and sold in size on any day, so there is less reason to keep a buffer.
The highest cash levels
Among diversified equity funds (sector funds left out) that had been running for at least a year and held no derivatives:
| Fund | Category | Net assets (₹ crore) | Cash |
|---|---|---|---|
| Bandhan Small Cap Fund | Small Cap | 34,159 | 13.32% |
| DSP Small Cap Fund | Small Cap | 21,659 | 11.70% |
| DSP Focused Fund | Focused | 2,671 | 11.70% |
| Bank of India ELSS Tax Saver Fund | ELSS | 1,414 | 11.68% |
| SBI Small Cap Fund | Small Cap | 42,631 | 11.60% |
| HDFC Small Cap Fund | Small Cap | 41,891 | 10.36% |
| Mahindra Manulife Multi Cap Fund | Multi Cap | 7,666 | 9.93% |
| Axis Flexi Cap Fund | Flexi Cap | 13,943 | 8.97% |
Four of the eight are small-cap funds. Of the five largest small-cap funds by net assets, three held more than 10% and a fourth, Quant Small Cap Fund, 9.98%. The largest, Nippon India Small Cap Fund (₹82,580 crore), held 2.83%.
In rupees, the largest single cash holding was HDFC Mid Cap Fund's: 7.07% of ₹1,08,325 crore, about ₹7,659 crore. Parag Parikh Flexi Cap Fund was next, at ₹5,026 crore (3.41%).
We left new funds out of the table because a fund that has just closed its offer is mostly cash by design. Nineteen schemes had their first NAV on or after 1 March 2026; Bandhan Contra Fund, whose first NAV came after the disclosure date, was 78.38% cash.
What this does not tell you
It is one day. Cash on 31 August 2026 can be a large inflow that arrived that week. With a single disclosure month we cannot say whether any fund's cash is rising or falling.
It does not explain itself. A high figure can be caution, unspent inflows, a reserve for redemptions or a fund that sold a large position the day before. Hedged positions complicate it further, which is why funds using derivatives are left out of the table.
It is not a timing signal. Cash in fund portfolios has no reliable record of predicting what the market does next, and this is not a recommendation to buy or sell any fund.
Where to go from here
The small-cap fund page ranks the category, and each fund's page shows its asset allocation from the same disclosure.
For what small-cap funds do with the money they do invest, see how concentrated small-cap portfolios are. The guide to overnight, liquid and ultra-short funds explains where this kind of cash usually sits.
For how much the domestic institutions bought this year, see DII buying in 2026.
Frequently asked questions
How much cash do Indian equity mutual funds hold?
On the 31 August 2026 portfolio disclosures, 585 schemes in SEBI's equity categories held ₹1,30,312 crore in cash and equivalents, 3.34% of their net assets. The median scheme held 2.67%.
Which equity fund category holds the most cash?
Weighted by size, contra funds held 6.67% and small-cap funds 6.59%. Large-cap funds held the least, 1.64%. In rupees, small-cap funds held the most cash of any category, ₹30,534 crore.
Is high cash in an equity fund a market signal?
Not reliably. Cash rises when a fund takes in money faster than it can invest it, when it is new, or when its manager finds little to buy. A small-cap fund may also keep cash to meet redemptions in shares that are slow to sell. The disclosure does not say which.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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