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176 NFOs were launched in FY24 Collecting Amount of Rs 63,538 crore

23 April 20245 mins read by Angel One
In February 2024, a maximum of 22 NFOs was introduced which had an inflow of 11,720 crore catering to around 43.62% contribution.
176 NFOs were launched in FY24 Collecting Amount of Rs 63,538 crore
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Recently Motilal Oswal Mutual Fund filed DRHP to launch 5 mutual funds while just before that Tata Mutual Fund filed DRHP for 6 new funds. There is a long way to for the new fund offerings which give investors a wide spectrum to invest according to their preferences and sector allocation.

A New Fund Offer (NFO) is when an asset management company (AMC) launches a new mutual fund scheme. This gives investors a chance to subscribe to the fund’s units during its initial offering period. NFOs usually come with a new investment strategy, theme, or asset class, allowing investors to get in from the start.

During the NFO period, investors can buy the fund’s units at the offer price, which is often fixed (like Rs 10 per unit). AMCs sometimes run promotional campaigns to generate interest in the NFO, and these usually have a limited subscription period.

In FY24, around 176 new funds were issued, raising Rs 63,538 crore. According to an analysis, below is a breakdown of how funds raised via NFOs contributed to overall equity inflows month over month:

Month Number of NFOs NFO Amount (Rs crore) Total Equity Inflows (Rs crore) NFO Contribution (%)
Apr-23 9 1,828 6,480 28.2
May-23 5 483 3,240 14.9
Jun-23 11 3,228 8,637 37.4
Jul-23 17 6,723 7,626 88.2
Aug-23 15 7,531 20,245 37.2
Sep-23 16 7,795 14,091 55.3
Oct-23 14 3,638 19,957 18.2
Nov-23 12 2,136 15,536 13.7
Dec-23 14 7,812 16,997 46
Jan-24 20 6,817 21,781 31.3
Feb-24 22 11,720 26,866 43.62
Mar-24 21 3,827 22,633 16.91
Total 63,538 1,84,089

Source: Fisdom Research

Source: Fisdom Research

New fund launches, or NFOs, can have several impacts on the market and existing mutual funds:


When a new fund is introduced, it often draws fresh investments from investors. This increased buying activity can add liquidity to the market, especially if the NFO is large or attracts significant investor attention.

Market Sentiment

The launch of a new fund can reflect investor sentiment. If investors are confident about the market’s prospects, they may be more inclined to invest in new funds. On the other hand, a lack of interest in NFOs could indicate caution or pessimism among investors.

Competition among Mutual Funds

NFOs bring new players or offerings into the mutual fund landscape. Existing mutual funds may need to adjust their strategies or offerings to remain competitive in attracting investors’ funds.

Sectoral Impact

Some NFOs are launched with specific themes or investment focuses, such as technology, healthcare, or sustainability. Depending on the sector, the introduction of these new funds can impact related industries and existing funds in those areas.

The above-mentioned impacts can not be tracked accurately but can be observed through inflow and outflow of funds.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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