Small-caps in demand, but NFOs opportunities limited

The small-cap segment has been on fire in recent times, but mutual fund houses won’t be launching many new fund offers (NFOs) in the space, said market experts.

“Going forward, there won’t be too many launches in the small-cap funds because everybody already has a scheme,” Dhirendra Kumar, Chief Executive Officer and Founder of Value Research said. He added that fund houses may have to resort to launching more index funds in the same space since there is no regulatory restriction on the latter.

In October, already 10 new fund offers are set to be launched. One already launched in the first week, while nine are ongoing. Out of these, there are two small-cap funds. Four of the active new fund offers are set to close on October 18, according to I…

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