MF's cash pile reduces to Rs 15,000 cr in May

“Fund houses felt they can participate in the rally as the market was heading towards the support zone of 15K level. MFs entered the market believing that the fundamentals are good,” Taurus Mutual Fund Managing Director R K Gupta said. According to the Mutual Fund Monthly Performance Report by Reliance Money, the fund houses were sitting on a cash pile of Rs 15,074.27 crore at May-end against that of Rs 20,108.92 crore at the end of previous month.

Fund managers said that availability of stocks at cheap valuations renewed their interest in the secondary market.

Analysts feel by June-end, the cash levels of the fund houses would increase as they would now again hold back their investment plans to cash-in on the correction that is expected to come in the market post the Budget on July 6.

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