Mutual fund investment
The month of June was very good for equity new fund offers (NFOs). During this period, an investment of about Rs 14,370 crore was seen in 11 new equity mutual fund schemes.
Earlier in July 2021, four NFOs had raised Rs 13,709 crore. In the first half of 2024, 30 active equity schemes have been launched by mutual funds. Their number was 51 in the whole of 2023.
Rs 37,885 crore invested in NFO till June
From the beginning of this year till June, Rs 37,885 crore has been invested in NFO, which was Rs 36,657 crore in the period of the previous full year. A total of 27 NFOs were launched in 2022 and a total investment of Rs 29,586 crore was made in them. The Indian stock market continues to rise since the results of the Lok Sabha elections. Due to this, a large number of mutual fund houses are bringing NFOs. Currently, about seven active and passive equity NFOs are open for subscription.
These funds are included in active NFOs
Active NFOs include ICICI Prudential MF’s Energy Opportunities Fund, Franklin Templeton MF’s Multicap NFO, and Edelweiss MF’s Business Cycle Fund. Most of the investment in NFOs is being made in high-risk categories like thematic. Expressing concern over this, CEO and Chairman of Parag Parekh Financial Advisory Services Limited, Neil Parekh said on social media that wow! The number of new NFOs has increased, especially in thematic funds. This is quite scary… everyone needs to be careful.