stock market The decline continues. The fluctuations in the market that started from 2024 are not showing any sign of stopping. However, despite this the confidence of mutual fund investors has not wavered. They are continuously investing in mutual funds. Not only this, they are also investing a lot of money in new mutual fund schemes. Let us tell you that the mutual fund house brought 239 NFOs (New Fund Offering) in 2024. Investors put Rs 1.18 lakh crore in these new fund offerings (NFO). In this, sector and thematic funds emerged as the first choice of investors. This information was given in the report of Germinate Investor Services Research on Monday.
Rising trend reflects increasing confidence of investors
According to the report released by Germinate Investor Services Research, in the year 2024, asset management companies (AMCs) operating mutual fund schemes raised Rs 1.18 lakh crore by launching 239 NFOs. Before this, Rs 63,854 crore was raised through 212 NFOs in 2023 and Rs 62,187 crore was raised through 228 NFOs in 2022. In the year 2020, which was badly affected by the Covid-19 pandemic, AMC had raised Rs 53,703 crore through 81 new offers. This upward trend in NFO issuance rate reflects a strong growth trajectory and growing investor confidence. NFOs are usually brought in in a bullish market environment when investor sentiment is high and optimistic.
For this reason popular among investors
NFOs were launched to take advantage of this optimistic trend of investors and attract investments. Industry experts said the stock market performance as well as positive investor sentiments led to more funds being raised through NFOs in 2024. According to the report, sector-specific or theme-based funds, index funds and exchange traded funds (ETFs) gained significant interest from investors last year. The report says that during this period, 53 NFOs raised Rs 79,109 crore and these funds emerged as the first choice of investors. Equity funds created for specific sectors or themes have become popular among investors due to their focused approach and sync with market trends.
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