Mutual fund managers have lowered cash levels in equity portfolios to the lowest point in five years. They used the opportunity created by recent declines in banking and IT stocks to buy shares.
Managers deployed capital into companies offering attractive valuations and strong earnings potential. Parag Parikh Flexicap was among the funds that cut cash positions significantly.
The moves mark a clear shift toward investing in sectors that had faced recent price pressure. This approach allowed funds to take advantage of lower stock prices while maintaining focus on resilient businesses.
Overall equity mutual fund cash holdings reached the five-year low as a result of these purchases.