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Don’t ignore this important information, if you invest in mutual funds

Mutual Funds

There are numerous possibilities available in various investment mediums. A mutual fund option is also available among these. Investors should now be aware of certain crucial information regarding mutual funds. In actuality, as mutual funds companies are not allowed to introduce new schemes (NFO) by the Securities and Exchange Board of India (SEBI), less money was obtained through new schemes in the most recent fiscal year 2022–23.

Decline

Data show that the mutual funds sector raised Rs 62,342 crore through new schemes in the most recent fiscal year, which is a decrease of 42% from the prior fiscal year. However, in 2022–2023, more NFOs were brought in than in the prior fiscal year. A total of 253 new schemes were launched in 2022–2023, up from 176 in 2021–2022 according to data provided by Morningstar India.

Mutual Funds – New Schemes

According to industry data, 12 NFOs in various categories were given by asset management companies (AMCs) during the current fiscal year. According to the data, 182 open-end and 71 closed-end schemes raised a combined Rs 62,342 crore in the most recent financial year. In contrast, in 2021–2022 176 NFOs raised a total of Rs. 1,07,896 crore. In 2020–2021, 84 new plans raised Rs 42,038 crore for mutual funds companies.

Affects NFO collection

NFO collection suffered in the most recent financial year for a variety of reasons. The three-month moratorium on issuing new programs through SEBI was one of the primary causes of this. In addition, extremely unpredictable markets, the exodus of foreign portfolio investors, and external variables all had an impact on investment in NFOs.

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