Mutual Funds float a dozen NFOs so far this year on broader market recovery

Experts say broader market recovery can lead to higher mobilisation of assets

The mutual fund (MF) industry is seeing a strong pick-up in new fund offerings (NFOs) with over a dozen new products being launched or filed by MFs in the current calendar year.

According to industry experts, the rising pile of NFOs could be attributed to broader market recovery and fund houses looking to fill-up gaps in their product basket.

"From September last year, market breadth has been improving. Typically, during such periods NFO collections can be higher as investor confidence improves with value of investments going up. Also, fund houses find such periods more conducive to quickly deploy investor funds