Mutual fund collection from NFO increased 4 times to Rs 22000 crore in September quarter, 48 new funds launched during this period
Mutual fund realization through New Fund Offering (NFO) increased almost four times to Rs 22000 crore during July-September of the current financial year compared to the previous quarter. 48 new funds were launched in the market during this period. More funds may come into the market in the coming time. Read what is the complete news.
According to the latest data, mutual fund collections through New Fund Offering (NFO) increased almost four times to Rs 22,000 crore in the July-September period of the current financial year compared to the previous quarter. During this period, 48 new schemes have come into the market.
“More NFOs can be expected in the coming quarters as many AMCs become operational and offer similar and differentiated products to equity and debt investors,” Gopal Kavalireddy, vice president of research at FYERS, told PTI.
According to experts, investors have faith in India's growth and the emergence of new sectors in the organized sector. In such a situation, more and more companies are raising money through new offerings in the primary and secondary markets.
To support these listed businesses, the AMC may launch more new funds in the equity and hybrid categories.
These NFOs, across 48 new funds launched during the quarter ending September 2023, cumulatively raised Rs 22,049 crore. According to Morningstar India data, there were 25 NFOs in the June quarter which raised Rs 5,539 crore.
Generally, new funds are launched when the market is bullish. NFOs are issued to capitalize on the mood of investors and attract their investments as investors are ready to invest during rising market times.
Firoz Aziz, deputy CEO of Anand Rathi Wealth, said, “SIP (systematic investment plan) inflows have increased to Rs 16,900 per month. The total inflows into mutual funds since the beginning of this year have been Rs 80,000 crore, so the movement towards equities As a result, NFOs are also getting good inflows."
New schemes garnering the highest AUM include ICICI Pru Innovation Fund, Baroda BNP Paribas Value, Bajaj Finserv Flexi Cap, HDFC Defense Fund, and HSBC Consumption Fund.