Buzz of Mutual Fund NFOs in FY 2024's first three quarters

Up until December 2023, the mutual fund sector has launched a cumulative count of 122 schemes, amassing a total of Rs 43,681 crore in investments, primarily driven by equity-oriented offerings.

In the initial three quarters of FY 2024, the mutual fund arena saw significant activity with the launch of 122 new fund offers (NFOs). These offerings spanned various investment categories, including debt, equity, hybrid, solution-oriented, and specialized schemes. Together, these NFOs garnered an impressive total of Rs 43,681 crore, showcasing robust investor interest and confidence in the mutual fund market.

The bulk of this capital influx originated from Equity Oriented Schemes, reflecting investors' inclination towards the flexibility and liquidity these schemes provide. Overall, these numbers depict a dynamic and thriving mutual fund landscape, highlighting substantial funds mobilization and a broad spectrum of investment opportunities for investors in the initial three quarters of FY 2024.

Source: AMFI

The data provided below and the accompanying chart offer a detailed overview of funds raised across various categories of mutual fund schemes during NFOs, distinguishing between open-end and closed-end funds, and providing a total summary.

In the Debt Oriented Schemes category, there are a total of 18 schemes, comprising 7 open-end and 11 closed-end schemes. Open-end schemes in this category have raised Rs 3,538 crore, while closed-end schemes have gathered Rs 2,798 crore. Together, these schemes have raised a total of Rs 6,336 crore.

Moving to Equity Oriented Schemes, there are 42 schemes, all of which are open-end funds. These schemes have collectively raised a significant amount of Rs 26,564 crore. This substantial mobilization of funds in the equity category suggests a strong preference among investors for open-end equity schemes.

Hybrid Schemes, which include a blend of debt and equity instruments, consist of 13 open-end schemes that have raised Rs 9,147 crore. There were no closed-end hybrid schemes.

Solution Oriented Schemes, aimed at fulfilling specific financial objectives like retirement planning or education funding, comprise 2 open-ended schemes with a total fund mobilization of Rs 165 crore. Similarly, in the Other Schemes category, which encompasses various specialized offerings, 47 open-end schemes have raised Rs 1,469 crore.

Overall, Equity Oriented Schemes dominate across all categories, with Hybrid Schemes following closely behind. This trend could indicate investor preferences for the flexibility and liquidity inherent in open-end structures. Moreover, the data highlights the strength of equity-oriented schemes in attracting investor capital, showcasing confidence in the potential returns offered by equity markets.

Data for the first three quarters of FY 2024

Disclaimer: The article is for informational purposes only and not investment advice.