Cautious MFs Keep Cash Buffers High in November Despite Market Gains

• Active equity mutual funds kept cash buffers elevated in November, despite benchmark Sensex and Nifty hitting fresh highs.
• Aggregate cash holdings marginally eased to 4.68% in November from 4.79% in October, totaling around Rs 2.02 lakh crore.
• Fund managers' cautious stance reflects wariness about stretched valuations across market segments.
• Some large fund houses, including SBI MF and ICICI Prudential, trimmed cash positions, while others like HDFC MF and Quant MF increased their liquidity.

Why It Matters: Mutual funds' high cash buffers signal market caution despite gains, affecting investment outlook.