Mutual funds’ NFO collection surges 4 times to Rs 22,000 cr in September quarter

financialexpress.com:

Mutual funds’ collection through new fund offerings (NFOs) surged nearly four times to Rs 22,000 crore in the July-September period this fiscal compared to the preceding quarter as 48 new schemes hit the market. Going forward, more NFOs can be expected in the coming quarters as several AMCs become operational and offer similar and differentiated products to the equity and debt investors, Gopal Kavalireddi, Vice President of Research at FYERS, said. “With investors firmly believing in the India growth story and the emergence of new segments in organised space, more and more companies are seeking funds through primary and secondary market offerings.

“To support these listed businesses, AMCs would be interested in launching more schemes across equity and hybrid categories, especially in the mid-, small-, and micro-cap market capitalisations,” he added. During the quarter that ended in September 2023, 48 schemes were launched, which were cumulatively able to garner Rs 22,049 crore at the NFO period. This was way higher than 25 NFOs that collected Rs 5,539 crore during their NFO period in the June quarter, according to data compiled by Morningstar India. Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The NFOs were floated to capitalise on the mood of investors and attract their investment as they were willing to invest at that time.

Feroze Azeez, Deputy CEO of Anand Rathi Wealth, said this huge inflow in NFOs is primarily due to the overall sentiment towards equity. Explaining further, he said that SIP (Systematic Investment Plan) flow increased to Rs 16,900 per month. Overall flows in mutual funds since the start of this year stood at Rs 80,000 crore so the momentum towards