FoFs get their groove back: Tax tune-up resets growth tempo, shows data

FoFs pool capital to invest in a variety of mutual fund schemes rather than directly in equities, debt, or commodities

Domestic FoFs hit a flat note after losing indexation benefits in April 2023

 

The domestic fund of funds (FoFs) sector, which had struggled after the loss of indexation benefits in April 2023, has seen a revival in investor interest following the tax adjustments announced in the 2024 Budget.

 

The broader category, which encompasses equity, debt, and commodity-focused offerings, has seen an increase in inflows over the past six months. FoFs have gathered nearly Rs 6,000 crore in the second half of 2024, a sharp rise compared to Rs 237 crore in the first half of the year.

 

FoFs pool capital