How Much Cash Do Midcap Funds Really Hold?

• Midcap funds held up to 18% cash in July 2025, reflecting market outlook.
• Motilal Oswal Midcap held 18% cash; Axis Midcap around 8.2% for balance.
• HDFC, DSP, Tata held 7.2%, 5.7%, 5.5% cash, showing varied strategies.

ET Wealth reported on midcap mutual funds, with some holding considerable cash in July 2025. Let's dive into the top performers and their cash holdings.

Cash in Funds

In July 2025, midcap mutual funds held up to 18% cash. This strategic allocation by fund managers reflects their market outlook. We examine the cash holdings of five prominent midcap funds to understand their approach during that period.

Motilal Oswal Leads

Motilal Oswal Midcap Fund led the pack, holding approximately 18% cash in its portfolio during July 2025. This significant cash position likely reflected the fund's cautious stance or opportunities it was looking to capitalize on.

Axis Midcap's Strategy

Axis Midcap Fund held around 8.2% cash. This allocation indicates a balanced approach, potentially preparing for future investment opportunities while managing risk. This careful balance is key to their strategy.

HDFC, DSP, and Tata

HDFC Mid Cap Fund held 7.2% cash. DSP Midcap Fund had 5.7% allocation in June. Tata Mid Cap Fund held around 5.5% cash. These holdings highlight varying strategies and market perspectives.

Funds' Strategic Decisions

These cash allocations showcase the dynamic nature of fund management. The decisions made during July 2025 reflect the market assessment by the fund managers. These decisions are important to the funds' long-term performance.