AMFI data shows that AMCs have launched 84 open-ended schemes so far in 2019, 18 more than 66 in 2018. Of these 84 open-ended schemes, 25 schemes were debt-oriented schemes; contrast this with the 14 debt schemes launched in 2018.
This shows that despite a bunch of defaults and rating downgrades in the past one year, AMCs have launched more debt funds in 2019.
Fund houses attribute this increase in new fund launches to SEBI product rationalisation.
“The main reason behind the rise in new launches is that AMCs are ensuring their product bouquet is complete with diverse offerings. More recently, many AMCs launched an Overnight Fund because it gained prominence among investors who want to invest for the short term,” said Manish Mehta, National Head - Sales & Distribution Alliance, Kotak Mutual Fund.
Meanwhile, the number of new fund launches in the equity category reduced to 28 schemes from 34 in 2018.
“With SEBI’s product classification in place, many fund houses launched fixed income-related products this year. Moreover, the launches in the debt segment has nothing to do with the market environment affected by credit risk products,” said Peshotan Dastoor, Head Sales, Franklin Templeton MF.
While AMCs are adding more debt products to their basket, Peshton says this trend may reverse in the next couple of years. “Rather than equity and debt funds, thematic category funds may witness a rise in future,” added Peshotan.
