Notwithstanding the turbulence in the capital market, mutual funds have lined up have lined up eight new fund offers and among them six are passive equity funds.
In fact, fund houses have filed 46 draft papers with SEBI for launching new funds since start of this fiscal. With equity markets beaten down and most key indices languishing much below their new high logged last September, mutual funds are launching passive funds tracking these indices. Investors will benefit when the markets bounce back and indices regain their lost glory.
One of the top five fund houses, Nippon India MF has lined up two NFOs on Nifty 500 Low Volatility 50 index and Nifty 500 Quality 50 index.
Among the recent entrants, Bajaj Finserv MF is tapping the market with Nifty 50 Index Fund and Nifty Next 50 Index Fund, while Groww MF has a Gilt Fund. Motilal Oswal has opened thematic fund on infrastructure fund.
The fund raise through NFOs has been a steady slide since start of this year. From a high of ₹13,852 crore in December, it has been falling in line with the bearish sentiments in the market. In fact, it had dropped 42 per cent in the March quarter to ₹12,658 crore against ₹23,982 crore logged in December quarter.
Feroze Azeez, Joint CEO, Anand Rathi Wealth said out of the total 30 NFOs launched last month, 11 were index funds and 11 were ETFs so almost two-thirds were passive category funds as AMCs are not allowed to have more than one fund in each diversified category.
While thematic/sector funds are highly seasonal in performance, index based funds track a particular index, which are rebalanced semi-annually or quarterly and hence the portfolio remains stagnant without much active management scope for the fund manager, he said.
The sharp fall in equity market due to global economic uncertainty and geopolitical issues had slowed down NFOs. The trade war unleashed by the US President Donald Trump has unsettled capital markets across global with investors dumping equity for investment in safe-haven gold which itself had scaled new high.
The stiff trade tariff imposed by the US on every other country has stoked up concern of inflation even as Trump insisting the US Fed to cut interest rates to salvage the slowing economy.
Published on April 26, 2025
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
