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The MF industry has collected close to Rs.63,000 crore from 253 NFOs launched during FY 2023, shows an analysis of AMFI data done by Cafemutual. In FY 2022, the industry collected Rs.1.08 lakh crore through NFOs indicating a decline of 40% in NFO collection.
Experts attribute this decline to discontinuation of NFOs for three months. Another reason could be not so good performance of mutual funds over the last one year.
Aashwin Dugal, Co-Chief Business Officer, Nippon Life India Asset Management points out that the decline was due to rise in interest rates both domestically and globally. Many people reduce their investments as more money goes towards repayment of existing loans, he added.
Among fund categories, equity funds saw highest traction with collection of over Rs.34,000 crore through 39 NFOs. Among the NFOs that collected highest inflows were SBI Dividend Yield Fund (Rs.3500 crore) and ICICI Prudential Housing Opportunities Fund (Rs. 3130 crore).
FMPs followed equity funds with collection of Rs.16,400 crore from 71 NFOs. Interestingly, 21 FMPs were launched during March 2023, which collected Rs.3900 crore. From April, 2023, the government has removed LTCG benefits from debt funds.
Surprisingly, passives funds have been gaining traction. A total of 121 schemes collected close to Rs.10,000 crore through NFOs, shows the data. While 84 index funds raised Rs.6000 crore during NFOs, 37 ETF NFOs collected Rs.3800 crore in FY 2023.
