mutual fund schemes Investors’ interest in investing in has decreased This information has been obtained from data published by companies. According to the information provided, the collection of the new schemes (NFO) of mutual fund companies has decreased in the last year. Asset Management Companies (AMCs) raise a total of Rs 62 000 crore from NFOs in 2022, a decrease of 38% compared to 2021. However, last year mutual fund companies introduced more new schemes. A total of 228 new schemes were introduced last year. This is much higher than the figure of 140 in 2021.
Focused on the fixed income category
The data shows that last year, fund managers focused on the fixed income category. Double the number of fixed income NFOs in 2022 compared to last year. According to the data, 179 ‘open funds’ and 49 ‘closed funds’ were launched in calendar year 2022. A total of Rs 62,187 crore was raised through them. And in 2021, an amount of Rs 99,704 crore was raised through 140 NFOs. In 2020, Rs 53,703 crore was raised through 81 new schemes. In 2022, AMCs focused on floating NFOs in the category of other schemes, especially index funds, and the segment of debt-oriented schemes, mainly fixed-term schemes. The maximum amount of funds was launched in the index fund segment (84), which raised Rs 11,235 crore, followed by fixed-term plans (49), which raised Rs 12,467 crore, and other ETFs (39 ), which raised Rs 3,405 crore.
Diminishing Returns Disillusioned
Nirav Karkera, head of research at Fisdom, said a combination of inflation, interest rate increases, geopolitical upheavals and the resulting economic shock weighed on investor sentiment. Because of this, the year 2022 saw low returns in some of the major market capitalization-based indices, while some gave negative returns. This has reduced investor interest in mutual funds. Because of this there has been a decline in investment. In addition, fewer NFO launches were seen in the core categories of flexicap, multicap and dynamic asset allocation, which also affected investment commitments. NFOs typically arise during a rising market when investor sentiment is high and bullish. With positive investor sentiments, the stock market raised more funds through NFO in 2021.
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