Mutual Funds Step Up Equity Buying, Cash Buffer Dips: Mutual Funds remained strong buyers in equities during November, stepping up equity deployment sharply to ₹43,465 Cr, including allocations to IPOs. This increased deployment nudged overall cash holdings slightly lower to ₹2.02 lakh Cr in November from ₹2.09 Lakh Cr in October.
AMC Cash Levels Ease Further in November: The average cash holding ratio across the top 20 Asset Management Companies softened to 4.06% in November, down from 4.54% in October, as equity AUM rose and market investments increased. The continued decline keeps the industry’s cash levels well below the 5% threshold, highlighting strong investor confidence, persistent risk-on sentiment and a preference among fund managers to stay more fully invested amid resilient market conditions.
PPFAS Mutual Fund continues to hold the highest cash-to-AUM ratio among equity-oriented schemes at 21.37% (₹28,992 Cr), signaling a distinctly conservative investment posture and strong flexibility for future market opportunities. Quant MF follows with a substantial 13.91% (₹12,082 Cr), while HDFC MF (6.55%) and Motilal Oswal MF (6.52%) remain comfortably above the industry average, reflecting cautious optimism.
Parag Parikh & SBI Contra Lead in Cash Proportion: Parag Parikh Flexi Cap Fund holds the highest cash-to-AUM ratio at 21.71% (₹28,178 Cr), reflecting a distinctly conservative and flexible strategy aimed at capitalizing on future market opportunities. Close behind, SBI Contra Fund maintains a substantial 19.87% (₹9,903 Cr) in cash, signalling a cautious yet opportunistic stance amid current market uncertainties. HDFC Flexi Cap Fund, with 13.81% (₹12,989 Cr), also demonstrates a prudent approach, keeping ample liquidity for tactical deployment as valuations evolve.
Contra & Flexi Cap Funds Lead the Liquidity Charts: Contra Funds top the liquidity chart with the highest cash-to-AUM ratio of 15.10% (₹11,392 Cr), reflecting a highly defensive and opportunistic positioning amid ongoing market volatility. Flexi Cap Funds follow with a strong 10.06% (₹54,905 Cr) held in cash, highlighting their tactical flexibility to deploy funds across market caps as opportunities emerge.
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