Mutual fund managers maintained a cautious investment stance in November even as benchmark indices touched record highs, choosing to be selective rather than broadly aggressive with equity exposure. The cautious approach came amid a broader market performance that lagged behind blue-chip stocks, prompting fund houses to balance risk and opportunity carefully.
Top preferences for mutual funds during the month included private banks and non-banking financial companies (NBFCs), reflecting confidence in the financial sector’s fundamentals. Fund houses increased their holdings in major private banks such as HDFC Bank and ICICI Bank, while adding stakes in NBFCs like Shriram Finance, L&T Finance, and M&M Financial. IT blue chips including Infosys and TCS also attracted buying interest, underscoring a focus on relatively stable and established names.
The selective positioning highlights how mutual funds are navigating elevated valuation levels in broader markets by leaning toward sectors perceived as having stronger growth potential and resilience. In contrast, exposure to more volatile or underperforming segments remained limited as managers sought to preserve portfolio quality.
Overall, the cautious stance combined with targeted sector bets suggests that fund managers are positioning portfolios to benefit from solid fundamentals in financials and large-cap stocks while remaining mindful of market risks amid record index levels.
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