Mutual Funds NFO Collection Declines in 2025 as Equity Interest Diminishes

In 2025, mutual funds experienced a notable decline in new fund offerings (NFO) collections, raising ₹63,631 crore through 222 NFOs by November, as per news reports.  

This represents a significant decrease compared to the previous year, highlighting a cooling interest in equity investments amidst market volatility. 

Equity NFOs Experience a Significant Drop 

The decline in 2025's NFO collections is primarily attributed to a reduction in active equity NFOs. By November, 51 equity NFOs had raised ₹29,148 crore, a stark contrast to 2024, where 69 NFOs collected over ₹91,000 crore. 

Despite the reduced collections, the number of NFOs launched in 2025 remained relatively consistent with the previous year. In 2024, 239 NFOs were introduced, compared to 222 in 2025.  

Read More: NFO Alert: Tata AIA Life Insurance Introduces Multicap Opportunities Fund! 

Market Volatility Influences Investor Decisions 

The volatility in equity markets has played a crucial role in shaping investor behaviour in 2025. As market conditions fluctuated, investors appeared more cautious, leading to a reduced appetite for new equity schemes. This cautious approach is reflected in the substantial drop in funds collected through equity NFOs. 

Conclusion 

The mutual fund industry's NFO collections in 2025 highlight a shift in investor sentiment, with a marked decline in equity interest. While the number of NFOs remained steady, the reduced collections underscore the impact of market volatility on investor decisions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.