Closed-end funds gain traction: Since 2017, 47 such schemes launched

Since 2017, 47 such schemes launched; mopped up Rs 175 billion

After two consecutive years of lull, the launch of closed-end funds has gained traction in the past year.

In 2017, 47 closed-end schemes were launched, which collectively mopped up Rs 175 billion. This is more than the combined amount collected in 2014, 2015, and 2016. This year so far, 11 funds have hit the market.

“In general, the appetite for these funds grows whenever the markets are buoyant,” said Kaustubh Belapurkar, director (fund research), Morningstar Investment Advisor India.

The benchmark BSE Sensex returned 28 per cent in 2017. It rose another 5 per cent in January, but since then it