Mutual Funds That Had Record Collections During Their NFOs in 2021

2021 has been an excellent year for NFOs (New Fund Offers). Collections recorded in exchange for different types of mutual funds were the highest in seven years. One possible reason for such high demand for mutual funds in 2021 is also the wide variety of new funds launched.

In addition to the usual kitty of mutual funds, 2021 offered just as many low-cost passively managed exchange-traded funds (ETFs), index funds, sectoral and thematic funds. What's more, given the demand of investors, there's already talk of launching more off-beat theme-based mutual funds in the mix in the coming year.

So, are you gearing up to invest in mutual funds? Well, then you should know which new funds hit record collections in 2021. Here are 5 of them.

1. SBI balanced advantage mutual Fund

With a whopping collection of Rs 14,551 crores, the SBI balanced advantage mutual fund collected the largest amount any new fund has ever collected. Clearly, this was one of the most sought-after mutual funds in India. Returns on it are expected to be substantial.

Anyway, since it is a professionally managed balanced mutual fund, it can help shield investors from market volatilities by boosting debt-linked exposure when the equity part of the fund underperforms. 

2. ICICI flexicap mutual fund

The month of June in 2021 saw the launch of ICICI’s flexicap fund scheme, which collected a staggering sum of Rs 9,808 crores. A flexicap mutual fund allows its investors to invest in stocks of large-cap, mid-cap and small-cap companies all at once.

This SEBI-approved newly launched wrung of mutual fund has many takers. Why? ICICI flexicap fund provides investors with a way to earn high returns by investing in small and mid-cap organisations but also reduce their risk exposure since they can invest a chunk of their corpus in more stable large-cap companies.

Additional Read – Everything About New Fund Offerings (NFO)

3. NJ balanced advantage fund

Backed by India’s largest distributor of mutual funds, NJ Wealth launched its balanced advantage mutual fund, which collected Rs 5216 crore in its first NFO. No one can predict the trajectory of average return on mutual funds by NJ Wealth, but they have managed to collect the highest amount for any maiden scheme launched by a fund house.

4. ICICI business cycle fund

With a collection of Rs 4,185 crore, this fund has become the biggest business cycle fund within the Indian mutual fund economy. The ICICI business cycle fund is all set to invest in synchronisation with different economic cycles. How? It will first figure out the industrial sectors predicted to do well and then invest in the right stocks to build a scheme portfolio that provides the best returns on mutual funds of this type.

5. Kotak multicap fund

The Kotak multicap fund collected Rs 3,510 crore, which is the highest NFO collection for any Kotak mutual fund. Through multicap funds, you can invest in stocks of companies with varying market capitalisations.

However, unlike flexi-cap funds, multi-cap mutual funds must at all times have to invest a minimum of 25% of their corpus in mid-cap and small-cap stocks.

Additional Read – NFO Vs IPO – What Is the Difference Between the Two?

Parting thoughts

Want to invest in any of these mutual funds? Apply through the Tata Capital Moneyfy website or the Moneyfy App. Through our user-friendly digital portal, you can filter through a wide array of mutual funds, SIPs, and other investment vehicles and apply for them instantly.