Flows into equity NFOs see recovery as 11 offers mop up Rs 4,000 cr

Average collection between April-July was Rs 377 cr, over twice the average in previous four months; Experts say uptick in markets could improve investor sentiments, drive higher flows

New fund offerings (NFOs), which were expected to see a sharp slowdown after the scrapping of upfront commission, are showing signs of recovery as 11 equity NFOs launched between April 2019 and July 2019 attracted more than Rs 4,000 crore of investor flows. Market experts say the uptick in the markets can give a boost to these flows.

An analysis of data collated from Association of Mutual Funds in India showed that the average NFO collection between April 2019 and July 2019 was Rs 377 crore, which was more than double the average collection seen in previous four months. Compared to