New fund launches slow down — here’s what investors should know

New fund offers (NFOs) from mutual fund houses slowed sharply from ₹30,416 crore raised in July last year to just ₹471 crore in May, even though 13 new funds launched that month. July has brought fresh offers too, including sectoral ETFs and high-risk momentum funds.
Kaustubh Belapurkar of Morningstar Investment Adviser India explained that a fund’s low starting price has no bearing on future returns, and urged investors to prefer funds with an established track record over untested new launches unless a strategy offers something genuinely unavailable elsewhere. He flagged newer, narrower momentum and thematic products as suitable only for high-risk investors.