To capitalise on the bull market, mutual fund houses launched 202 new fund offers (NFOs) in 2024, a record high, according to data from Morningstar. This was the first time NFOs crossed the 200-mark in a calendar year. Investors, however, should carefully scrutinise these offerings rather than succumb to hard-selling tactics.
Why the upsurge in NFOs?
The Indian market has witnessed a prolonged bull run. “A large number of new investors joined the equity markets during this period. NFOs are one means through which asset managers try to capture market share,” says Kaustubh Belapurkar, director-manager research, Morningstar Investment Research India.
