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It will soon be raining NFOs as mutual funds are ready with an array of new products. Since January 2022, mutual funds have approached SEBI with draft papers of 67 schemes and only a handful of them have been launched. The rest of these schemes and a few from 2021 are waiting to roll out.
The primary reason for the big backlog is the 3-month ban on NFOs. SEBI has restrained mutual funds from launching new schemes between April and June due to mutual funds’ failure to comply with pooled account norms.
Since the ban has now ended, mutual funds are expected to come out with back-to-back NFOs.
The 'NFOs in waiting' range from thematic funds to ETFs to international funds to some plain vanilla equity and debt schemes. The list includes a high number of innovative funds with themes like metaverse, internet of things, cloud computing, clean energy, artificial intelligence and futuristic healthcare.
New mutual fund players like Navi, Samco and WhiteOak are also waiting to launch a number of schemes.
