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Amid buoyant equity markets and renewed foreign inflows, active equity mutual funds continued to hold elevated cash buffers in October, signaling fund managers’ cautious stance despite the market’s upward momentum.

Data from ACE Equities showed that aggregate cash holdings in active equity schemes inched up to 4.11% in October from 4.10% in September. In absolute terms, cash reserves rose to ₹2.09 lakh crore from ₹1.99 lakh crore a month earlier.

This increase came even as Indian equities advanced, buoyed by foreign investors who bought over $1.6 billion worth of shares during the month, supported by optimism over a potential US–India trade deal and robust September-quarter earnings.

Market experts noted that fund managers often retain higher cash positions to n

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