Equity mutual funds deployed Rs 400 crore from their cash balances in September, a report by Nuvama Alternative & Quantitative Research said on Tuesday.

With this, the overall balances fell from Rs 1.77 lakh crore, or 5.23% of the AUM of equity schemes, in August to Rs 1.76 lakh crore, or 5.13%, in September.

Kotak MF led the deployment, reducing its cash holdings by Rs 1,300 crore, followed by Nippon India MF and Quant MF, which pared cash by Rs 800 crore and Rs 700 crore, respectively. “This trend reflects a continued tilt towards equity allocation among select funds,” the report said.

Conversely, a few schemes opted to raise their cash buffers, signalling selective caution. Motilal Oswal MF increased cash by Rs 3,600 crore, taking its ratio from 2.2% to 6.2%, while PPFAS MF added Rs

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