Is it true that 2021 was a year of record NFO offerings in India?

Just as the year 2021 was a record year for equity IPOs, it was also a robust year for mutual fund NFOs and the good thing is that there was no dubious theme underlying this NFO rally. The year 2021 saw a total of 140 new fund offerings (NFOs) by Indian mutual funds across various categories which ended up collecting Rs.100,000 crore in the process. The biggest of these NFOs was SBI Balanced Advantage Fund collection Rs.14,500 crore in total.

Clearly, it was a case of a sharp revival in retail interest in mutual fund new offerings. These included closed-ended funds and even ETFs. In 2020, a total of 81 mutual fund NFOs raised Rs.53,703 crore from the mutual fund investors as fresh money. NFO collections doubled in 2021, triggered by buoyant markets as funds tried to fill product gaps post recategorization of schemes. Maximum NFOs were seen among index funds, ETFs and FTPs.