NFOs are gaining popularity due to increasing demand for alternative investments and the rise of digital platforms.
The growth in NFOs is attributed to the increasing demand for alternative investments and the rise of digital platforms.
Asset Management Companies and NFOs
An Overview of NFOs
Asset management companies (AMCs) have been launching a significant number of new fund offerings (NFOs) in recent years. These NFOs have been attracting a substantial amount of capital from investors, with the total mobilisation reaching Rs 1.18 lakh crore in 2024. This is a substantial increase from the previous year, when 212 NFOs collected Rs 63,854 crore.
Factors Contributing to the Growth of NFOs
The growth in NFOs can be attributed to several factors. Some of the key drivers include:
The Nifty 50 index closed at 24,439.8 on December 31, 2023, and on January 2, 2024, it closed at 26,353.2.
The Indian Stock Market in 2024: A Year of Exceptional Growth
The Indian stock market experienced an extraordinary year in 2024, with the Sensex and Nifty indices witnessing significant growth. The Sensex, which is the benchmark index of the Indian stock market, jumped 5,898.75 points or 8.16 per cent, while the Nifty surged 1,913.4 points.
Key Drivers of the Market’s Growth
Several factors contributed to the exceptional growth of the Indian stock market in 2024. Some of the key drivers include:
NFOs Attract Record Inflows Amid Low-Risk, High-Return Profile.
The NFO market has seen a significant surge in inflows, with a total of Rs 1,43,000 crore invested in the first half of 2024.
NFO Market Trends
The NFO market has experienced a remarkable growth in the past few years, with a significant increase in inflows and a corresponding rise in the number of NFO launches. This growth can be attributed to the increasing popularity of NFOs among investors, who are attracted to the low-risk and high-return investment options offered by these funds.
Key Statistics
NFO Launches and Investor Preferences
The NFO market has seen a significant increase in the number of launches in recent years, with many new funds being introduced to cater to the growing demand for NFOs.
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