Business
Active equity mutual funds dropped their cash holdings to 4.68% of assets in November 2024 (from 4.79% in October), keeping reserves steady at ₹2.02 lakh crore out of a massive ₹81.32 lakh crore industry AUM.
Fund managers are playing it safe as markets look pricey, which could impact returns if this cautious trend sticks around.
Why does this matter for you?
If you invest or plan to, these moves signal that fund managers aren’t rushing to buy at high prices—so don’t expect wild gains just yet.
Watching how much cash funds hold is a smart way to gage market mood and spot when things might shift.
What’s behind the move?
Markets climbed last month—Sensex rose 2.11% and Nifty 1.87% thanks to US trade deal hopes and possible rate cuts, drawing in almost ₹30,000 crore from investors.
Some big funds like SBI and ICICI Prudential cut their cash piles further, but HDFC and Quant actually boosted theirs, showing not everyone’s ready to dive back in while prices feel stretched.