4 stocks where cash-rich mutual funds are showing faith

Summary: In today’s high-priced market, a few selective funds are holding unusually large cash piles. They are being selective to find bets that offer real value. We tracked their latest moves and uncovered the 4 stocks they’re backing. Read on to find the list. When markets are frothy, it’s easy to get swept up in rallies and buy at inflated prices. That’s why tracking what mutual funds sitting on cash are buying can be especially instructive. These are funds that could hold unusually high levels of cash—15 per cent or more—in expensive markets as they choose to be selective. Watching their purchases can help investors spot where seasoned, valuation-conscious managers still see opportunity, even when the broader market is chasing momentum.  Two such funds in the current market are Parag Parikh Flexi Cap and ICICI Prudential Smallcap. Both are sitting on about 23 per cent and 15 per cent cash, respectively, signalling how they are choosing restraint over action. That doesn’t mean these funds have gone into hibernation. Volatile markets often toss up opportunities and both funds have quietly used the noise to add to select positions. To see where their conviction lies, we tracked mutual fund shareholding over the past six months and looked for companies where these two funds have raised at least 1 per cent stake each. Below ar

This article was originally published on October 01, 2025.