Are New Fund Offers Made For You?
Dalal Street Investment Journal|August 02, 2021
The last one year has been quite hectic in terms of launch of new fund offers (NFOs). According to a report by Morningstar, in FY21 the industry launched 110 funds which have collectively raised Rs 48,988 crore. Such data would be quite tempting for investors to check out the NFO route of investing. But have you considered all the pros and cons? The article underlines the salient factors of NFOs
Are New Fund Offers Made For You?

A lot has changed in the last couple of years for new fund offers (NFOs). Recently, one of India’s largest fund houses, ICICI Prudential, collected around Rs 10,000 crore in its NFO, ICICI Prudential Flexi-Cap Fund. To give you a perspective on this number, out of 400 odd equity dedicated mutual fund schemes, only 29 funds have asset under management (AUM) of greater than Rs 10,000 crore. Even within 30 flexi-cap funds that we have now, only seven of them have AUM greater than Rs 10,000 crore. This is probably the biggest collection by any single mutual fund scheme in India. Compare this with the start of the year 2019 when the fund houses had to extend the issue dates to collect a respectable amount in NFOs.

This highlights the euphoria around the NFOs. The last one year has been quite hectic in terms of launch of NFOs. According to a report by Morningstar, in FY21 the industry launched 110 funds which have collectively raised Rs 48,988 crore. Out of this, 45 funds were from the equity category that garnered around Rs 30,000 crore. Historically, we have seen that a lot of NFOs come when the equity market is doing well. The equity market from the lows of March 2020 has seen an impressive rise. This is also reflected in most of the equity dedicated funds that have delivered spectacular returns. Many categories of funds have generated returns in triple digits over the last 15 months. The last time we saw such a performance from equity-dedicated mutual funds was in 2017. Again in that year we saw 32 open-ended, equity-oriented NFOs getting launched.

Esta historia es de la edición August 02, 2021 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición August 02, 2021 de Dalal Street Investment Journal.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE DALAL STREET INVESTMENT JOURNALVer todo
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 minutos  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 minutos  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 minutos  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 minutos  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 minutos  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 minutos  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 minutos  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 minutos  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 minutos  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 minutos  |
July 29, 2024