Cash Piles Up: Higher Cash Holdings and MF Investors

The Indian equity market witnessed an unprecedented cash holding of ₹1.86 lakh crore at the end of August 2024, which accounts for around 5.2 per cent of the industry's equity AUM. This significant cash reserve raises critical questions about the market's direction and the implications for unit holders in these funds. There’s a common belief that elevated cash levels held by institutions or celebrated investors like Warren Buffett signal an impending market decline.