June saw a significant influx of fresh funds into the mutual fund industry through new fund offerings (NFOs), with 11 NFOs from various fund houses raising Rs 14,370 crore in June.
It represents the largest influx of new offerings to yet. The previous record was set in July 2021, when Rs 13,709 crore was raised by four NFOs.
In the first half of 2024, mutual funds have introduced thirty active equity schemes, as opposed to 51 over the whole of 2023.
From the start of this year to June, investments in NFOs totaled Rs 37,885 crore, up from Rs 36,657 crore during the course of the previous year. In 2022, a total of 27 NFOs were introduced, and Rs 29,586 crore was invested in them.
After the Lok Sabha election results, the Indian stock market is still rising. An increasing number of mutual fund institutions are releasing NFOs as a result of the current surge.
Approximately seven active and passive equity NFOs are available for subscription at this time. The Energy Opportunities Fund of ICICI Prudential MF, the Multicap NFO of Franklin Templeton MF, and the Business Cycle Fund of Edelweiss MF are examples of active NFOs.
The majority of NFOs fall under high-risk categories, such as themed. The CEO and Chairman of Parag Parekh Financial Advisory Services Limited (PPFAS), Neil Parekh, expressed alarm about this on social media, writing, “Wow!, the number of new NFOs, especially thematic funds, has increased.” This is quite frightening; use caution, everyone.
The mutual fund sector is seeing a steady rise in investment. The amount of inflows was Rs 40,608 crore in June. With NFO investments of Rs 9,563 crore, there was an inflow of Rs 34,697 crore in May.
As of 2024, investors have received gains from both the Sensex and Nifty of more than ten percent.
Read More
“The FPI community will be crucial in elevating India’s economy to the third rank”
T20 World Cup: India’s trophy victory in Barbados confirms Jay Shah’s February forecast