Equity new fund offers grind to halt in 2012
The year 2012 saw the launch of seven new equity funds that mobilised R477 crore, data from Morningstar India show. The fund launches declined despite gains of more than 26% in the benchmark indices last year, which also saw outflows of R14,148 crore in equity schemes.
The overall NFO count (excluding FMPs) has dipped to 90 in 2012 from 121 a year earlier and 170 in 2008.
“Investors have become wary of investing in new schemes that don’t have a track record because of the market volatility. On the other hand, fund houses, which have been facing cost constraints for some time now, have become reluctant to launch new schemes as they may not be able to provide the kind of marketing support required to support new fund offers,” said Jimmy Patel, CEO, Quantum MF.
Equity NFOs launched in 2012 were largely from smaller fund houses, said industry observers.
This is because the bigger AMCs already own a sizeable number of equity schemes in their portfolio, they said. Among the seven equity funds launched in 2012, Axis Focused 25 Fund and ICICI Prudential US Bluechip Equity Fund together managed to mobilise R306 crore, or about 64% of the total AUM mobilised by equity NFOs in 2012.
The number of new equity fund launches and the
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