Mutual funds’ collection through new fund offers (NFOs) remained subdued in 2022, with asset management companies (AMCs) garnering over Rs 62,000 crore through new schemes, which was 38 per cent less compared to the fund mop-up in 2021. 

However, higher number of NFOs was launched in 2022 compared to that of the preceding year. A total of 228 new schemes were floated last year, which was way higher than 140 launched in 2021, according to data compiled by Morningstar India. 

In 2022, fund managers focused on passive funds and fixed income categories like fixed maturity plans. In fact, number of fixed income NFOs seems to have doubled in 2022 over the previous year’s. 

According to the data, a total of 179 open-end funds and 49 closed-end funds were launched in the calendar year 2022, and cumulatively, these funds garnered Rs 62,187 crore. 

In comparison, 140 NFOs were floated in 2021, and cumulatively, these funds were able to mobilise Rs 99,704 crore, and 81 new schemes were launched in 2020, raking in Rs 53,703 crore. 

“The year 2022 was relatively dull with low single-digit returns on a couple of key market-cap based indices, while some even trod into the negative territory. A combination of inflation-interest rate dynamics, geopolitical upheavals and consequent economic ramifications dented investor sentiments,” Nirav Karkera, the head of research at Fisdom, said. 

In addition, fewer NFOs were launched in core categories of flexicap, multicap and dynamic asset allocation that also affected investment commitments, he added. 

Usually, NFOs come during a surging market when investors’ sentiment is high and optimistic.