Quant Mutual Fund Lightens Cash Load, Eyes Market Momentum

Unknown Apr 02, 2026 900 Views

Quant Mutual Fund lowered its cash holding to 10.3% of assets under management (AUM) in March 2025, a move that indicates strategic reduction as Indian equity markets maintain their robust rise. The decision follows when the mutual fund business experienced phenomenal growth in assets and boosted investor engagement with a number of top asset managers tweaking their cash levels to balance liquidity needs and opportunity in markets.

Cash Holding: Quant's March 2025 Position

Quant Mutual Fund had 10.3% of its March 2025 AUM as cash, becoming one of the leading mutual fund houses in March 2025 cash holding per se.
Globally ranked only by PPFAS Mutual Fund (21.9%) and Motilal Oswal Mutual Fund (17.8%), others like Mirae Asset and Kotak Mahindra had much lesser at 1.3% and 2.5% respectively.

Industry-Wide Trends

Six mutual funds had over 10% cash holding as a percentage of AUM in March, reflecting the conservative stance of some fund managers in times of market volatility.
The combined cash holding of the mutual fund industry increased to ₹2.05 lakh crore in March 2025, from ₹1.87 lakh crore in February 2025, reflecting the trend of having more liquidity across a larger number of funds.
The Indian mutual fund sector closed out FY25 with a 23% year-over-year growth in aggregate AUM at ₹65.7 lakh crore, led by equity funds.
The first 20 asset management firms witnessed a 7.5% month-to-month growth in total equity value during March, as markets showed sustained momentum and investors remained optimistic.

Strategic Implications

Fund managers generally carry cash buffers to handle redemption pressures or to take advantage of investment opportunities in future market corrections.
Quant Mutual Fund's move to reduce cash holding indicates a stronger equity deployment stand, potentially in the hope to leverage current market rallies and sectoral trends.

Performance Snapshot

Quant Mutual Fund schemes staged strong performances during early March as all 21 schemes reported positive returns ranging between 6.35% and 2.68% during March 3-6, 2025, in a rebounding equity market.

Sources: Moneycontrol, Economic Times, Angel One

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