Mutual fund new fund offer (NFO) collections declined sharply in the first half of calendar year 2026, with fund houses mobilizing a total of Rs. 12,420 crore through NFOs, down 35% from Rs. 19,092 crore collected during the corresponding period in 2025.
The decline in collections was accompanied by a fall in the number of NFO launches. Fund houses launched 87 NFOs in H1 CY2026, compared to 116 launches in H1 CY2025, marking a 25% decline.
The data indicates a moderation in both the number of new schemes entering the market and the amount of money mobilized through them. However, the composition of NFO activity has shifted, with equity and debt schemes accounting for a larger share of collections, while hybrid schemes witnessed a significant decline in both launches and mobilization.
One of the most important emerging trend is that the money collected through the index fund and ETF NFOs, now account for around 25% of the total money mobilized through the NFOs.
Here are the key trends;
Equity continues to dominate NFO collections
Equity schemes remained the largest contributor to NFO collections in H1 CY2026, mobilizing Rs. 7,092 crore. However, collections declined 34% from Rs. 10,690 crore in H1 CY2025.
Despite the decline in absolute mobilisation, equity’s share of total NFO collections increased marginally to 57% in H1 CY2026 from 55.99% a year earlier.
The category also saw 23 new launches in H1 CY2026, compared to 25 in H1 CY2025. Consequently, its share of total NFO launches increased from 21.55% to 26.44%.
This suggests that while fund houses launched fewer equity NFOs in absolute terms, equity remained the preferred category for new product launches and continued to attract the largest share of NFO capital.
Hybrid NFO collections see steepest fall
Hybrid funds witnessed the sharpest decline in NFO mobilization during the period.
Collections from hybrid NFOs fell by 76% to Rs. 451 crore in H1 CY2026 from Rs. 1,901 crore in H1 CY2025. Their share of total NFO collections has also dropped from 9.96% to just 3.63%.
Interestingly, the number of hybrid NFO launches increased from five in H1 2025 to six in H1 CY 2026. This means that despite a 20% increase in the number of launches, mobilization of funds fell sharply.
The data points to a significant decline in the average amount mobilized per hybrid NFO. In H1 2025, five hybrid NFOs collectively raised Rs. 1,901 crore, translating into an average collection of around Rs. 380 crore per NFO. In H1 CY 2026, six launches raised Rs. 451 crore, bringing the average down to around Rs. 75 crore, a significant decline in average size of a hybrid NFO.
Passive NFOs account for a quarter of total collections
Index funds and ETFs continued to account for a substantial portion of NFO activity.
Index funds mobilised Rs. 2,904 crore in H1 CY2026, down 28% from Rs. 4,059 crore in H1 CY2025. Despite the decline, their share of total NFO collections increased from 21.26% to 23.38%.
The number of index fund launches, however, fell 38% to 28 from 45.
ETFs raised Rs. 224 crore in H1 CY2026, compared with Rs. 262 crore in H1 CY2025, a relatively modest 15% decline. Their share of total NFO collections increased from 1.37% to 1.80%.
Fund houses launched 25 ETFs in H1 CY2026, down from 33 in the previous year. ETFs therefore continued to represent one of the most active segments in terms of the number of NFOs launched.
Together, index funds and ETFs accounted for 53 of the 87 NFO launches in H1 CY2026, or nearly 61% of all new fund launches. However, the two categories together accounted for around 25% of total NFO collections.
During the first half of 2026, the industry mobilized Rs. 3,186 crore through the NFOs in index funds and ETFs. Although, this is 26% less than Rs. 4,321 crore collected in the corresponding period last year, the share of passive fund collection has gone up compared to previous year.
The share of the money collected through the passive NFOs has gone up to 25.65% compared to 22.63% in the previous year.
Debt NFO collections fall, but share increases
Debt NFO collections declined 22% to Rs. 1,691 crore in H1 CY2026 from Rs. 2,180 crore in H1 CY2025.
However, debt schemes increased their share of overall NFO collections from 11.42% to 13.62%.
The number of debt NFO launches fell by half, from eight in H1 CY2025 to four in H1 CY2026. Despite the smaller number of launches, the decline in collections was less pronounced than the overall NFO market.
This indicates that the average mobilizations per debt NFO increased during the period. The four debt NFOs launched in H1CY 2026 collected an average of around Rs. 423 crore each, compared to around Rs. 273 crore per NFO in H1 CY2025.
NFO market becomes more concentrated
The data suggests that the NFO market in H1 CY2026 became more concentrated around equity products.
Equity schemes accounted for 57.10% of total NFO collections, up from 55.99% in H1 CY2025. Debt also increased its share to 13.62% from 11.42%.
In contrast, hybrid schemes saw their share collapse to 3.63% from 9.96%.
At the same time, passive categories remained dominant in terms of the number of products launched. Index funds and ETFs together accounted for 61% of all NFO launches in H1 CY2026.
The numbers suggest that fund houses are launching a large number of passive products but equity NFOs continue to command the bulk of investor capital.
Average NFO size falls sharply
The overall decline in NFO collections was steeper than the decline in the number of launches. With collections falling 35% and launches declining 25%, the average collection per NFO also decreased.
In H1 2025, 116 NFOs raised Rs. 19,092 crore, translating into an average collection of around Rs. 165 crore per NFO. In H1 CY2026, 87 NFOs raised Rs. 12,420 crore, with the average collection falling to around Rs. 143 crore per NFO.
This represents a decline of around 13% in average mobilizations per NFO.
Let’s look at the details of the NFO collections:
|
NFO inflows
|
2025
|
% of total
|
2026
|
% of total
|
|
Debt
|
2180
|
11.42
|
1691
|
13.62
|
|
Equity
|
10690
|
55.99
|
7092
|
57.10
|
|
Hybrid
|
1901
|
9.96
|
451
|
3.63
|
|
Index funds
|
4059
|
21.26
|
2904
|
23.38
|
|
ETFs
|
262
|
1.37
|
224
|
1.80
|
|
FoF – Overseas
|
0
|
–
|
58
|
0.47
|
|
Total
|
19092
|
100
|
12420
|
100
|
Source: AMFI
Here is the detail of number of NFO launches:
|
No. NFO launches
|
2025
|
% of total
|
2026
|
% of total
|
|
Debt
|
8
|
6.90
|
4
|
4.60
|
|
Equity
|
25
|
21.55
|
23
|
26.44
|
|
Hybrid
|
5
|
4.31
|
6
|
6.90
|
|
Index funds
|
45
|
38.79
|
28
|
32.18
|
|
ETFs
|
33
|
28.45
|
25
|
28.74
|
|
FoF – Overseas
|
0
|
0.00
|
1
|
1.15
|
|
Total
|
116
|
100.00
|
87
|
100.00
|
Source: AMFI
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