Record Surge: India’s NFOs Hit New Highs in 2024

In 2024, 239 new fund offerings by asset management companies raised Rs 1.18 lakh crore, primarily in thematic equity funds, indicating strong growth and investor confidence. This marks a significant increase from previous years. Experts attribute this to positive stock market performance and investor sentiment.

In 2024, asset management companies introduced 239 new fund offerings (NFOs), mobilizing Rs 1.18 lakh crore, significantly outpacing prior years, according to Germinate Investor Services Research. Thematic equity funds topped the list, signaling robust growth and investor confidence.

This pattern reflects a substantial rise from 212 NFOs gathering Rs 63,854 crore in 2023 and 228 NFOs collecting Rs 62,187 crore in 2022. From just 81 offerings in 2020, the NFO count surged to 239 by 2024, and funds raised more than doubled since then.

Industry analysts suggest this trend was fueled by an optimistic stock market and investor sentiment, with the Sensex climbing 5,898.75 points or 8.16%, and the Nifty increasing by 1,913.4 points or 8.80% over the year. December recorded the highest monthly NFO launches, wrapping up an impressive year.

(With inputs from agencies.)