Trends and performance analysis
In a first, there were over 100 new equity and hybrid fund launches for the third straight year.
The fund houses of HDFC and ICICI have each launched 30 new funds in the previous three years. Kotak and Mirae Asset are next, with 22 and 20 launches.
The large-cap category has witnessed 55 new funds since 2021, the highest in the equity-oriented domain. Of them, 52 are passive funds.
In the equity universe, multi-cap funds attracted the highest amount of investor money. Among hybrid funds, dynamic asset allocation funds topped the list.
We found only 15 funds launched since 2021 that received at least Rs 2,000 crore of investor money and had a 12-month performance history.
Of them, 11 had outperformed their respective category averages. Of them, only 5 had seen their total assets shrink as of Nov 30, 2023.
Some of the NFOs have done reasonably well. However, it’s best to invest in funds with a minimum of three years of performance history.