investment in mutual funds decreased, there was a huge decline of 38 percent in MF, know the reason. The trend of investors in mutual funds decreased, there was a huge decline of 38 percent in investment, know the reason

mutual fund schemes There has been a decline in the interest of investors to invest in This information has been received from the data released by the companies. According to the information given, the collection from new schemes (NFO) of mutual fund companies has declined in the last year. Asset management companies (AMCs) collect a total of Rs 62,000 crore from NFOs in 2022, a decline of 38 per cent compared to 2021. However, last year mutual fund companies introduced more number of new schemes. A total of 228 new schemes were introduced last year. This is much higher than the figure of 140 in 2021.

Focused on fixed income category

The data shows that last year, fund managers focused on the fixed income category. Double the number of fixed income NFOs in 2022 as compared to last year. As per the data, 179 ‘open-end funds’ and 49 ‘closed-end funds’ were launched in the calendar year 2022. A total of Rs 62,187 crore was raised through them. And in 2021, an amount of Rs 99,704 crore was raised through 140 NFOs. In 2020, Rs 53,703 crore was raised through 81 new schemes. In 2022, AMCs were focused on floating NFOs in other schemes category, especially index funds, and the debt-oriented scheme segment, mainly fixed term schemes. The maximum number of funds were launched in the index fund segment (84), which garnered Rs 11,235 crore, followed by fixed term plans (49), which raised Rs 12,467 crore, and other ETFs (39), which collected Rs 3,405 crore .

Diminishing Returns Disillusioned

Nirav Karkera, head of research at Fisdom, said a combination of inflation, interest rate hikes, geopolitical upheavals and the resultant economic impact weighed on investor sentiment. Due to this, the year 2022 saw low returns on some major market-cap based indices, while some gave negative returns. This has reduced the interest of investors in mutual funds. Due to this there has been a decrease in investment. Besides, fewer NFO launches were observed in core categories of flexicap, multicap and dynamic asset allocation, which also impacted investment commitments. Typically, NFOs come during a rising market when investor sentiment is high and optimistic. With positive investor sentiments, the stock market raised more funds through NFOs in 2021.

Latest Business News