The bull run in the equity market and the heightened retail interest have led to a flurry of new fund offers (NFOs) from the mutual fund fraternity.
As a result, 2021 has seen a steady stream of NFOs so far.
July has been a blockbuster month largely thanks to ICICI Prudential’s mega Rs 10,000 crore fundraise via their newly launched Flexicap Fund. Apparently, it was the largest fund raised ever in the mutual fund world.
Flexicap is a new category introduced by the Securities and Exchange Board of India (SEBI) and several asset management companies (AMCs) have moved to launch this fund in the segment.
Interestingly, passive funds as a category have been a huge draw this calendar year. 2021 has seen 12 new index funds and 8 new exchange-traded funds (ETF) schemes launch.
Meanwhile, the rising trend of global investing has led to 6 NFOs in the fund of funds category.
Watch the accompanying video of CNBC-TV18’s Surabhi Upadhyay for more details.