Mutual fund collections through new fund offerings have remained subdued at ₹62,342 crore in 2022-23, marking a 42% decline from the preceding fiscal year. However, a higher number of NFOs was launched in 2022-23 (FY23) compared to the preceding year, said a report by PTI.
The report citing data from Morningstar India said 253 new fund offers were launched in FY23, significantly higher than the 176 NFOs launched in the previous year.
Moreover, in the current fiscal so far, AMCs have floated 12 NFOs in different categories, the report stated.
In the past fiscal year, fund managers focused on passive funds and fixed-income categories like fixed maturity plans, it said.
A total of 182 open-end funds and 71 closed-end funds were launched in the financial year 2022-23, and cumulatively, these funds garnered ₹62,342 crore, as per the report.
In comparison, 176 NFOs were floated in 2021-22 and cumulatively, these funds were able to mobilise ₹1,07,896 crore while 84 new schemes were launched in 2020-21 raising ₹42,038 crore, it said.
Usually, NFOs come during a surging market when investor sentiment is high and optimistic. The stock market performance along with positive investor sentiments led to higher fund mobilisation through NFOs in 2021-22, the report said.
Experts believe that various factors, including the three-month ban imposed by SEBI on launching new schemes, highly volatile markets, FPI outflows, and global factors, have impacted NFO collections in FY23, it noted.
The maximum number of funds (84) was launched in the index fund segment, which amassed ₹6,004 crore, followed by fixed-term plans (71), which mobilised ₹16,356 crore, and other ETFs (36), which collected ₹3,216 crore.
Further, in the equity category, 32 NFOs were launched, while six new fund offerings were floated in the hybrid category, according to the report.
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