Losing steam: Average NFO collection slumps in FY23, shows data

At Rs 260 crore, average amount mobilised per new fund offer 57% below last financial year's tally

New fund offers (NFOs) by mutual fund (MF) houses this financial year (2022-23) have managed to amass only a fraction of what they did in 2021-22 (FY22).

Forty-nine NFOs launched between April and August have mopped up Rs 12,671 crore, at an average of nearly Rs 260 crore. By comparison, 176 NFOs launched in FY22 collected Rs 1.08 trillion, translating into Rs 613 crore per offering.

Experts attribute this dip in collection to fewer launches in popular categories by top fund houses — and their weak performance last year. Moreover, concerns around expensive valuations and issues bunching up after the