Three-month NFO pause may not impact equity inflows, say industry players

Strong SIP inflows will help cushion the blow, they add

The three-month ban on new fund offers (NFO) may not make a huge dent for the Rs 39-trillion domestic mutual fund industry. While equity NFOs have helped industry mobilise an average Rs 11,000 crore every quarter during financial year 2021-22, industry players are confident that flows will continue to remain robust thanks to the strong momentum in systematic investment plans (SIP).

“Till this issue gets resolved we will not launch any new schemes. This will certainly have an impact on fund houses who were planning to launch NFOs. However, we don’t believe overall monthly flows for the industry will have a