New Delhi, April 28 -- As the Nifty 50 crashed more than 11% in March amid escalating tensions between the US, Iran and Israel, equity funds slashed their cash holdings throughout the month, aggressively buying into stocks at beaten-down prices. This widespread reduction in liquidity highlighted how differently fund managers utilize "dry powder" during a crisis. While some moved with lightning speed to exhaust their cash, others had a more measured pace of deployment.

Quant Mutual Fund captured the mood in a note to investors, saying it believes the current phase could emerge as the biggest buying opportunity since the covid period. The fund house said it was important to stay focused during extreme phases of market panic and euphoria to...