Active equity mutual funds hold ₹2.09 lakh crore cash in October despite market rally

Active equity mutual funds held ₹2.09 lakh crore in cash (4.11% of AUM) in October, signalling caution despite market gains and US$1.6 billion foreign inflows.

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Active equity mutual funds hold ₹2.09 lakh crore cash in October despite market rally

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Active equity mutual funds hold ₹2.09 lakh crore cash in October despite market rally
Active equity mutual funds held ₹2.
According to ACE Equities data released this week, active-management equity mutual funds in India held cash reserves of approximately ₹2.09 lakh crore in October, up from ₹1.99 lakh crore in September (a rise to 4.11% of AUM). Meanwhile, Indian equities gained and foreign investors added over US$1.6 billion in Indian shares during the month. One fund house reported cash reserves of over ₹32,800 crore at a single AMC. The elevated cash buffer suggests fund managers are positioning cautiously despite strong market momentum. 

This may affect equity deployment patterns in coming quarters.

Sentinel