Asset mobilisation through NFOs at 9-year high

Industry players say, currently, investors prefer existing funds with a reasonable performance track record over new scheme launches

Asset mobilisation through the new fund offer (NFO) route has hit a nine-year high in 2017. The mutual fund (MF) industry launched a total of 47 NFOs during the first 10 months of the year, to mop up a cumulative Rs 13,500 crore. The average NFO size, too, has increased to a nine-year high of Rs 288 crore. The amount raised this year is still a fraction of what it used to be during the bull run of 2005-08. The annual mop-up during those four years was an average Rs 28,000 crore. Industry players say, currently, investors prefer existing funds