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Revamped debt fund tax slows the roll of new mutual fund launches

73 NFOs in FY24's first half compared to 183 in the previous stretch

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2 min read Last Updated : Oct 29 2023 | 9:57 PM IST

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The launch of new schemes by mutual funds (MFs) has decelerated due to changes in debt fund taxation. During the first half (H1) of this financial year (April–September 2023), fund houses introduced a total of 73 new fund offerings (NFOs), compared to 183 in the second half (H2) of 2022-23, or FY23 (October–March), according to data from the Association of Mutual Funds in India.

However, a higher proportion of equity and hybrid fund launches has driven up average collections.

NFOs in the ongoing financial year have averaged approximately Rs 378 crore, compared to around Rs 226 crore in H2FY23.

In total, NFOs

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