Mutual funds reduced their cash holdings by Rs 1,943 crore monthly. Cash went down from Rs 2.07 lakh crore in December 2025 to Rs 2.05 lakh crore in January 2026. Interestingly, cash as a percentage of assets under management (AUM) rose from 4.81% in December to 4.87% in January. HDFC Mutual Fund had the highest cash at Rs 31,510 crore. This is 6.87% of its total AUM. The AMC's equity AUM was Rs 4.27 lakh crore in January 2026. SBI Mutual Fund, the biggest fund house by AUM, held Rs 29,690 crore in cash. That made up 3.91% of its total AUM. PPFAS Mutual Fund held about Rs 27,773 crore in cash. Among its funds, the Parag Parikh Flexi Cap Fund had Rs 27,023 crore, while the Parag Parikh ELSS Tax Saver Fund kept Rs 750 crore in cash. ICICI Prudential Mutual Fund reported cash holdings of Rs 21,506 crore. This was 4.16% of its total AUM in January. Axis Mutual Fund maintained Rs 14,770 crore in cash. This accounted for 7.57% of its AUM. Quant Mutual Fund stood out with Rs 13,125 crore in cash, which was 16.75% of its AUM in January 2026.