MFs net Rs 1 lakh crore via new funds in FY22 – Times of India

NEW DELHI: Using on retail investors’ curiosity and a pointy rally in fairness markets, asset management companies (AMCs) launched 176 new fund choices (NFOs) in FY22, garnering Rs 1. 08 lakh crore. However with liquidity tightening, rates of interest on the rise, inventory market consolidation in progress and the return to workplace, there could possibly be subdued curiosity in NFOs in future.
The FY22 determine was means larger than FY21 when 84 NFOs have been floated and Rs 42,038 crore mobilised, in accordance with information compiled by Morningstar India. Many of the schemes have been launched within the index and ETF class, to assist each — passive and energetic traders.
Often, NFOs come throughout a surging market when investor sentiment is excessive and optimistic. The inventory market together with the constructive investor sentiments stored surging submit March 2020, resulting in the launch of a better variety of NFOs. The NFOs have been floated to capitalise on the temper of traders and entice their funding as they have been prepared to take a position at the moment. Whereas the fastened maturity plans (FMPs) class might see appreciable launches, the identical can’t be anticipated from different classes, Gopal Kavalireddi, head of analysis at broking platform Fyers, mentioned. Additionally, virtually all AMCs have launched new schemes throughout most classes, thereby filling the sooner present product gaps that was created post-recategorisation, he mentioned.

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