MF houses go slow on NFOs, file draft papers for 59 schemes in Apr-Jul

With a wide array of existing mutual fund schemes, asset management companies are going slow on launching new ones in a highly competitive landscape as they filed draft documents for 59 new fund offerings (NFOs) in the first seven months of the year. In comparison, draft papers for 70 NFOs were filed in the year-ago period. In 2022, a total of 228 new schemes were floated against 140 in 2021, industry data showed. Moreover, the remaining months of 2023 are not expected to see NFO numbers anywhere close to those of 2022 or 2021, SAS Online founder and CEO Shrey Jain said. The reasons behind the decline in NFOs could be a combination of the factors as the mutual fund industry's dynamics are influenced by various internal and external factors. "AMCs may be concentrating on managing and promoting their existing schemes, rather than launching new ones. This strategy allows them to maximise the returns for existing investors and maintain stable assets under management," Jain said. Also,

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