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MF scheme launches hold steady, but NFO collections register drop

120 NFOs this H1, up from 91, yet volatility and tougher rules sting inflows

funds, mutual fund, investors
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While these rules came into force in April 2025, most fund houses implemented them soon after the change was announced. | Illustration: Binay Sinha

Abhishek Kumar Mumbai

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The strong momentum in mutual fund (MF) scheme launches, which took the new fund offering (NFO) tally to a record high last year, has continued so far this calendar year. However, NFO collections have taken a major hit. 
The NFO tally for the first half of 2025 is likely to come in around 120, compared with 91 during the same period of 2024. NFO collections, which stood at nearly ₹50,000 crore between January and June 2024 and nearly ₹69,000 crore in the subsequent six months, were just around ₹17,000 crore in the first five months of 2025. 
According to experts,