Equity NFOs pick up as market rally

Second half of FY17 saw a sudden surge in these, mainly in closed-end category

There has been a surge in new fund offer (NFO) schemes in the equity mutual fund segment over recent months, amid a strong rally in share prices.

The earlier belief was that such offers were loss-making propositions and would die with the current cap on commissions.

In all of 2016-17 (the financial year ended on March 31), the MF sector saw 29 new equity schemes, both closed-end and open-ended. As many as 25 of these hit the market during the September-March period, garnering assets worth Rs 4,220 crore.

"This is certainly not a small size. It's surprising but is true and I feel