MF equity schemes’ cash holdings rise by ₹8,161 crore in December

CASH HOLDINGS OF equity mutual fund schemes increased by %8,161 crore month-on-month in December 2025 to $1.49 lakh crore, as fund houses sold shares of companies in the IT, services, and healthcare sectors, according to Prime Database’s monthly mutual fund tracker.

- ANANYA GROVER

During this period, foreign portfolio investors were net sellers of $23,690 crore after two months of positive flows while DIlIs invested $79,620 crore, against *77,084 crore last month. Largeand mid-cap equity indices fell after rising for three consecutive months, while small-cap index recorded a decline for a second consecutive month.

Overall, the industry’s cash holdings reduced by %82,469.70 crore month on month to 3.23 lakh crores as debt fund managers found opportunities to deploy in long-term bonds after the RBI's December policy.