Mutual fund companies raised Rs 1 lakh crore through NFO in 2021

Mutual fund companies have raised around Rs 1 lakh crore in 2021 through 140 new fund offers (NFOs). This success was achieved due to a strong increase in market interest by retail investors due to the rally in the stock market.

However, asset management companies (AMCs) may limit NFOs this year due to volatility in the stock market, said Harshad Chetanwala, co-founder,

Ankit Yadav, Asset Manager (America) and Director, Market Maestro, also believes that there will be a reduction in NFOs in 2022 and when the rates start increasing in 2023, their number will be very less.

As per Morningstar India data, there were 140 NFOs (including closed end funds and ETFs) in 2021. It was successful in raising Rs 99,704 crore through these offerings.

Earlier in 2020, a total of Rs 53,703 crore could be raised through 81 NFOs.