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Active equity mutual funds hold ₹2.09 lakh crore cash buffer amid strong market rally
Equity mutual funds in India held approximately ₹2.
India’s active-management equity mutual funds carried cash reserves of about ₹2.09 lakh crore (≈4.11% of AUM) in October, rising from ₹1.99 lakh crore in September, data shows. At the same time, Indian equities gained and foreign investors added over US$1.6 billion during the month. A fund house revealed its own cash buffer exceeded ₹32,800 crore. The elevated cash levels point to cautious positioning despite market momentum, suggesting fund managers are readying deployment selectively into quality equities.
Analysts will watch how quickly these buffers convert into equity exposure as valuations remain stretched.