After two years of strong showing, equity new fund offers (NFOs) have lost steam this year.
So far from January, mutual funds have seen only 13 NFOs, which together have mobilised less than Rs 900 crore. Last year saw 63 NFOs, to raise a little over Rs 8,800 crore.
The drop comes even as the benchmark indices are nearing their all-time highs and broader indices are clocking new highs. The tightening of commission norms and investors' preferences for existing schemes are proving detrimental for newer schemes, say observers.
