Quant Mutual Fund is seizing the opportunity presented by the Nifty50's 9% decline, increasing its investments while decreasing its cash holdings. Conversely, PPFAS Mutual Fund has adopted a more cautious approach, increasing its cash reserves to capitalize on future investment opportunities and navigate market volatility.

In October 2024, MFs held a total cash pile of Rs 1.80 lakh crore, or 5.05% of their total AUM, slightly down from Rs 1.86 lakh crore in September. The total equity AUM for October was Rs 35.72 lakh crore. Among the 43 MFs, SBI Mutual Fund had the largest cash holding at Rs 31,126 crore, representing 4.46% of its total AUM.

ELSS and focused mutual funds, which experienced outflows for the first half of the fiscal year, are regaining investor interest. Renewed confidence in the equity market and tax benefits are driving this comeback, making these categories attractive options for investors, particularly those under the old tax regime.

Data reveals that 18 mid-cap mutual funds have consistently yielded positive returns over the past three years. These funds, including Baroda BNP Paribas Mid Cap Fund and Edelweiss Mid Cap Fund, have maintained their positive performance trajectory into 2024. However, investors are cautioned that past performance is not indicative of future returns and should consult a financial advisor.

ETMutualFunds analyzed 261 equity mutual funds and found that some have delivered impressive returns, with up to 55% growth in the past year. The top performers include Motilal Oswal Midcap Fund, which gained 54.94%, Invesco India Focused Fund with 49.56%, and Bandhan Small Cap Fund with 49.26%. These funds stand out for their strong one-year returns.

All equity mutual fund categories experienced negative returns in the past month, with losses ranging from 0.82% to 12.42%. Factors like global economic uncertainties and foreign outflows contributed to the downturn. Despite the negative returns, experts suggest that long-term investors could view this as a buying opportunity, emphasizing a balanced approach and diversification.

Seven ELSS mutual funds, including SBI Long Term Equity Fund and HDFC ELSS Tax saver, have transformed a monthly SIP of Rs 10,000 into over Rs 1 crore in 25 years, demonstrating their potential for long-term wealth creation through tax-saving investments.