AMCs mobilises NFO: Asset management companies (AMCs) have witnessed a surge in new fund offerings (NFOs), raising a total of Rs 66,364 crore in the fiscal year 2023–24, marking a 6.5 per cent increase from the previous year's Rs 62,342 crore amassed through 253 NFOs in 2022–23.

According to a report by FYERS Research, the uptick in NFO mobilisation reflects the ongoing financialisation of savings, driven by increased investor recognition of the role of financial assets in wealth creation. Rising income levels and growing expenditures have heightened the demand for avenues offering higher returns, leading to a notable shift in investor attitudes and risk appetites, particularly towards equities.

The report highlights that the January-March period of 2024 recorded the highest number of NFOs, totaling 63, with fund mobilisation reaching Rs 22,683 crore. This trend was followed by the October–December period of 2023, which saw 49 NFOs and mobilised Rs 16,093 crore.

NFOs are typically launched during bullish market phases to capitalise on positive investor sentiments and attract investments. Industry experts attribute the robust fund mobilisation in FY24 to the stellar performance of the stock market, with benchmark indices delivering impressive returns, including a 28.6 per cent yield from the Nifty 50 index.

Domestic institutional investors (DIIs) played a significant role in driving equity investments, pouring over Rs 2 lakh crore into the market in FY24. Retail investors also contributed substantially, with monthly inflows into Systematic Investment Plans (SIPs) rising from Rs 13,720 crore in April 2023 to Rs 19,270 crore by March 2024.

The mutual fund industry witnessed a substantial increase in net flows, reaching Rs 3.55 lakh crore in FY24, significantly surpassing the previous year's inflows of Rs 76,225 crore.

(with PTI inputs)