MUMBAI: Mutual fund houses raised Rs 28,708 crore through new fund offers (NFOs) in January-October 2026, less than half the `60,505 crore mobilised in the corresponding period last year, even as the number of launches remained almost unchanged.The industry saw 196 NFOs during the 10-month period, compared with 198 a year earlier, suggesting that a steady pipeline of new products has not translated into comparable collections.
Muted market sentiment and investors’ preference for established schemes with a track record have weighed on demand, even as asset management companies (AMCs) continue to expand their product portfolios. “Over the last 12 months, the overall market sentiment has not been very bullish. Whenever markets are subdued, the flow of money, whether into NFOs or existing schemes, tends to slow down,” said Naval Kagalwala, COO and head of products at Shriram Wealth.
Investors generally prefer funds with an established track record, assets under management and a history of performance, Kagalwala said. An NFO needs to address a specific investor need or offer a relatively new idea to stand out. However, scope for innovation remains limited under the existing regulatory framework. “Unless new sub-categories are introduced or some flexibility is provided, innovation in NFOs tends to remain restricted,” he said.
Sachin Jain, managing partner at Scripbox, said NFOs remained a useful tool for AMCs to ramp up collections. However, mobilisation also depends on distribution reach, with larger fund houses better placed to attract money through their sales teams, distributor networks and marketing budgets.
In October, 28 NFOs collected Rs 3,829 crore, 41.4% more than the `2,708 crore raised in September. However, collections remained well below August’s `7,109 crore, the highest monthly mobilisation during the 10-month period. Three fund houses — ICICI Prudential, Aditya Birla Sun Life and Mirae Asset — accounted for nearly 90% of October’s total. ICICI Prudential alone raised `1,494 crore through two launches, of which its Contra Fund accounted for `1,488 crore.
Equity funds led collections during January-October, raising `13,397 crore through 38 launches. Debt funds collected `6,347 crore from 17 launches, while hybrid funds raised `2,970 crore through 14 offers.
Passive products saw more than 100 index fund and exchange-traded fund launches, but mobilised only `5,210 crore. Of these, 88 equity-oriented launches raised `2,249 crore, while 13 debt-oriented launches collected `2,763 crore.