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New Delhi:

The year 2024 was very special for mutual funds. Asset Management Companies raised Rs 1.18 lakh crore by launching 239 new fund offers (NFOs). This information is given in a report.

Increased demand for NFO in 2024

According to the report of Germinate Investor Services Research, mutual funds will remain very popular among investors in 2024. Investors showed the most interest in social theme-based funds (Thematic Funds), Index Funds and Exchange Traded Funds (ETFs).

According to the report, 53 NFOs alone raised Rs 79,109 crore, which emerged as the first choice of investors. These funds were focused on specific sectors and market needs, due to which investors immediately accepted them.

Big jump compared to previous years

In 2023, Rs 63,854 crore was raised through 212 NFOs and in 2022, Rs 62,187 crore was raised through 228 NFOs. Whereas in 2020, which was the year of the Covid-19 pandemic, Rs 53,703 crore was raised from only 81 NFOs.

Figures for 2024 show that the mutual fund industry is continuously growing. This increasing pace of NFO issuance shows that investor confidence in the market is strengthening.

Why did NFO become the choice of investors?

New fund offers (NFOs) are usually launched when the market is bullish and investors are optimistic. Experts believe that in 2024, better performance of the stock market and positive sentiment of investors will boost mutual fund investment.

According to the report, sector-specific and thematic funds are attracting investors. These funds focus on market trends and particular industries, due to which investors prefer to invest in them.

This performance of the Mutual Fund Industry shows that investor confidence has increased. The huge amount raised in 2024 and the success of the NFO indicate that this industry will grow strongly in the coming years.

Also read- This is the right formula for investing in mutual fund SIP, know smart ways and tips


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