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Jio BlackRock debut powers record July inflows in mutual fund NFOs

Mutual funds (MFs) recorded bumper inflows from fund launches in July, led by the debut offerings of JioBlackRock MF. Thirty schemes completed their new fund offering (NFO) period last month, mobilising a total of ₹30,416 crore. Debt NFOs were the largest contributors, with five schemes drawing nearly ₹19,000 crore. This included ₹17,800 crore raised by three of JioBlackRock MF's debut funds — Overnight, Liquid, and Money Market. 'Inflows in the liquid and money market segments were bolstered by launches — JioBlackRock Liquid Fund (₹8,917 crore) and JioBlackRock Money Market Fund (₹6,285 crore) — which garnered sizeable investments and contributed meaningfully to July's strong headline flows,' said Nehal Meshram, senior research analyst at Morningstar India. The July NFO mopup went past the previous high of ₹22,769 crore achieved in August 2021. The NFO pipeline for the coming months is strong. Since July, fund houses have filed with the Securities and Exchange Board of India for nearly 50 NFOs, including 10 active equity and hybrid funds, which tend to attract higher investor interest at launch. Plans are also in place for fund-of-funds schemes, which invest across multiple funds — a segment seeing greater traction after taxation changes in 2024. A few of these have already hit the market in recent weeks. The pickup in NFOs and collections also lifted overall MF inflows in July. Equity MF inflows surged to a record ₹42,702 crore, with NFOs accounting for about ₹9,000 crore. Total inflows across equity, debt, hybrid, and passive schemes reached ₹1.8 trillion. According to analysts, the revival in NFO activity and broader inflows has brightened the outlook for MFs. 'We expect inflow momentum to pick up pace further in the near term and sustain the healthy levels in the medium term, led by higher retail participation, better investor understanding of market volatility, and rising investment discipline, along with incrementally higher inflows from B30 cities. We remain optimistic over the mid- to long-term horizon amid improving geographic penetration and the rising popularity of MFs, mainly among younger and mid-income investors,' InCred Equities said in a note.