In April 2023, Indian mutual funds raised their cash allocations by ₹12,726 crore, bringing total cash holdings to ₹1.98 lakh crore. This increase comes despite a strong market recovery, with the Nifty 50 and BSE Sensex rising by 6.60% and 5.96%, respectively. The cash allocation now represents 4.52% of total assets under management (AUM), down from 4.72% in March. Among the 49 fund houses reporting data, 25 increased their cash holdings, with ICICI Prudential Mutual Fund leading by adding ₹4,825 crore. SBI Mutual Fund remains the largest fund house by AUM, holding ₹29,712 crore in cash, which is 3.92% of its total AUM. Other notable fund houses with significant cash holdings include HDFC Mutual Fund and ICICI Prudential Mutual Fund, which hold ₹23,819 crore and ₹22,114 crore, respectively. This strategy allows fund managers to maintain liquidity for potential redemptions and investment opportunities.