InvestorQ : Can you tell me about the recent NFO of NJ India Mutual Fund, which got a very good response?
Chandralekha Desai made post

Can you tell me about the recent NFO of NJ India Mutual Fund, which got a very good response?

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Neelam Naik answered.
2 months ago
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NJ India Mutual fund, one of the recent entrants into the mutual fund business, has collected Rs.5,200 crore in its maiden NFO of the NJ Balanced Advantage Fund. This marks record maiden NFO collection by any fund in Indian history. The fund is a major distributor of mutual funds and it extensively relied on its network of agents to sell its own NFO fund. Of course, balanced advantage funds were made popular by the SBI recent NFO.

Why is this story significant? The NJ record collection in the NFO shows us that a forward integration model can work wherein a distributor originates and manages mutual fund. Secondly, NJ has proved that even if you are not a bancassurance player, you can still make a mark in the mutual funds business. Lastly, balanced advantage is ruled based and NJ plans to focus on passives. This is almost like an affirmation that there is a market for passives.

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