27 mutual fund NFOs together collected Rs 14,575 crore in September

In September, around 27 new open-ended mutual funds were floated in the market, which together collected Rs 14,575 crore. During the same period, the maximum number of index funds were launched. Around 13 index funds collected Rs 3,656 crore.

Among the 13 index funds launched in the month were SBI Nifty 500 Index Fund, Kotak Nifty India Tourism Index Fund, Motilal Oswal Nifty 500 Momentum 50 Index Fund, UTI Nifty200 Quality 30 Index Fund; UTI Nifty Private Bank Index Fund, and Bandhan Nifty Midcap 150 Index Fund.

Four sectoral/thematic funds and Other ETFs were launched in September, which collected Rs 7,842 crore and Rs 102 crore, respectively.


The four sectoral/thematic mutual funds launched in September were Axis Consumption Fund, Bandhan Business Cycle Fund, HSBC India Export Opportunities Fund, and Invesco India Technology Fund.

“The robust net inflows into NFOs points towards their continued appeal among investors. However, investors should be cautious while selecting funds specially from the sector/thematic category. Such funds offer a very high-risk high return investment proposition and may not fit in the portfolio of every investor,” said Melvyn Santarita, Analyst – Manager Research, Morningstar Investment Research India

“Either investors should themselves understand the dynamics of the underlying sector or theme to take a prudent investment decision, or they should have qualified and experienced advisors who can help them take the right decision with regards to such investments. Additionally, they should approach new funds after careful deliberation and comparison with similar existing offerings and ensuring their aptness in the portfolio,” added Melvyn Santarita.

Among equity-oriented categories, one multi cap, large & mid cap, and dividend yield funds were also launched during the said period.

One multi asset allocation fund - Union Multi Asset Allocation Fund - was launched in September which mobilised Rs 824 crore. WhiteOak Capital Arbitrage Fund, the only arbitrage fund launched in September, collected Rs 48 crore in its NFO period.

Only one medium to long duration fund, Franklin India Medium to Long Duration Fund, was launched in September which collected Rs 72 crore.

No close-ended fund was launched in September.