How to avoid overlapping during collision

Hi there,

I’m building a simple project where a mannequin hand grabs a cylinder spawned way above the hand. However, the cylinder passes through the hand (overlap), without stopping or changing direction.
For the cylinder, the collision setting in the blueprint is: (simulate physics is selected)

The hand was placed in the pawn blueprint, and set as default pawn class in the world setting. For the hand skeletal mesh, the simulate physics is selected, but collision presets is “no collision”. I tried to set it to block all or to all other attributes from the list, but then the skeletal mesh just disappears from the camera if I do so.
Another thing I attempted to do, was to create a collision capsule inside the skeletal mesh. The collision presets were blockAll. This however didn’t stop/ cause the actual collision when the cylinder was dropped.

May I know how to simulate the two solid objects collide with each other without overlapping or simply, how to grab the falling cylinder?