India's NFO Inflows Halve in 2025 as Investors Shift to Diversified Funds
Personal Finance
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CNBC TV18•29-01-2026, 15:15
India's NFO Inflows Halve in 2025 as Investors Shift to Diversified Funds
- •India's New Fund Offer (NFO) inflows dropped over 54% year-on-year in 2025, mobilizing ₹67,705 crore, down from ₹1,18,519 crore in 2024.
- •Investors pivoted from aggressive thematic bets to diversified, risk-balanced strategies, including flexi-cap funds and ETFs.
- •Equity funds dominated NFO launches with 192 out of 245, but the focus shifted from sectoral/thematic to diversified equity.
- •ETFs emerged as a key trend with 78 launches, driven by preference for passive, low-cost products and commodity-backed hedges.
- •Manufacturing remained a strong theme, with HDFC Manufacturing Fund attracting ₹12,500 crore; Jio-BlackRock Flexi Cap Fund led overall mobilization with ₹17,800 crore.
Why It Matters: NFO inflows halved in 2025 as investors prioritized diversification and risk-balanced strategies over thematic funds.
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