Summary of this article
NFO launches surged post-2020, peaking in 2024
Activity moderates as AMCs adopt cautious approach, says Report
Investors prefer clear strategies and proven themes
After reaching its peak in 2024, NFO (new fund offer) launches slowed down in 2025, according to the data. “This moderation could be a result of a more cautious stance by asset management companies (AMCs) and investors becoming more selective, focusing on clear strategies and proven themes,” says a report titled ‘Market Pulse 2025: NFO & IPO Report’ by Germinate Investor Services.
“2025 was a year of recalibration for the NFOs domain,” says the report. As per the report, 2025 witnessed the launch of a total of 245 NFOs. These NFOs mobilised Rs 67,705 crore.
According to the report, while equity continued to be the preferred asset class, the nature of equity participation changed, with growing interest in flexi cap funds, exchange-traded funds (ETFs), and multi-asset strategies.
ETFs are mutual fund schemes that trade on stock exchanges just like shares and usually track an index, sector, or commodity.
Key Findings from the 2025 NFO Report are as follows:
2025 saw 245 NFO launches: The number of NFO launches rose marginally from 239 in 2024 to 245 in 2025. “This increase came even as fund houses focused more on strategy-led launches rather than expanding offerings purely by volume,” says the report.
Total amount collected via NFOs declined sharply by over 54 per cent year-on-year from Rs 1,18,519 crore in 2024 to Rs 67,705 crore in 2025. As per the report, this drop reflects a more cautious stance from investors after the unusually strong inflows seen last year.
Almost 80 per cent (192 out of the 245) NFOs launched during the year were equity-oriented. “This number makes it clear that equity remained the core investment choice despite a more restrained market environment,” says the report.
While 2024 witnessed most offers in sectoral and thematic funds, 2025 witnessed wider participation across ETFs, flexi-cap funds, and diversified equity strategies.
2025 saw 78 ETF NFO launches. “This shows growing investor preference for passive, low-cost, and rules-based investment products,” says the report.
Jio-BlackRock Flexi Cap Fund became the largest NFO of the year. It raised around Rs 17,800 crore.
Consumption, Healthcare, Services, Rural and Demographic plays, and Business Cycles stood as the most prominent investment themes during the year.
July was the peak fund-raising month: NFOs raised Rs 30,416 crore in the month.
