Parag Parikh cuts cash to 9.77% and adds to equity holdings

what happened

India's biggest actively managed mutual fund by assets, Parag Parikh Flexi Cap Fund, has been steadily running down its reserves. According to TradingView, citing Mint, the share held in cash, debt, money-market paper and arbitrage positions was 9.77% in September 2026. It stood at 18.94% in March and 11.58% in August.

The fund's factsheet says it picks stocks one by one rather than basing allocation on macroeconomic conditions. Earlier, equity CIO Rajeev Thakkar said cash had peaked near 25% before falling to roughly 14–15%, and he expected single-digit levels at some point.

In September the fund fully exited Great Eastern Shipping and bought no new names, but raised stakes in 13 existing positions. The largest increase was in DLF, from 137.10 to 527.73 lakh shares. Holdings in Petronet LNG, Indus Towers and Indraprastha Gas also grew.

why it matters

For the Indian market, this signals that a large asset manager is putting spare capital to work in equities rather than holding it in cash. Since inception the fund has returned 17.76%, while over the past year it fell 3.54% against a 2.03% decline in the Nifty 500 TRI benchmark. Moves like this matter for gauging institutional demand in Indian stocks.

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