First NFOs after ban: WhiteOak Capital Mutual Fund collects around Rs 600 crore; Edelweiss MF gets over Rs 400 crore

WhiteOak Capital Mutual Fund, which launched its first fund earlier this month, received around Rs 600 crore of flows in its new fund offer (NFO). Edelweiss MF, which launched its first equity fund after a gap of two years, got over Rs 400 crore of flows.

These two were the first NFOs that were launched after SEBI’s NFO ban was lifted. After getting the deadline extended to July 1, the MF industry put in place new systems related to pooling of accounts.

Industry executives say NFO flows are likely to get diluted as so many NFO launches are going to get bunched up after lifting of the ban.

Already 30 NFOs have been launched in July. The NFO of WhiteOak Capital Flexicap Fund was open for subscription between July 12 and July 26. Founded by Prashant Khemka, former CIO and lead portfolio manager of GS India equity and global emerging markets, at Goldman Sachs Asset Management, WhiteOak Capital Mutual Fund is a new fund house in the Rs 37 lakh crore MF industry.

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The Edelweiss Focused Equity Fund’s NFO was open for subscription between July 12 and July 25.

Last year, the MF industry received record NFO collections, with fund houses launching several theme-based and passively-managed funds.

However, the NFO rush came to a pause after the MF industry failed to meet the deadline of complying with SEBI’s new requirements on pool accounts. SEBI had asked the MF industry to discontinue the use of pool accounts from April 1, 2022.

SEBI extended the deadline till July 1, but directed mutual funds to stop new fund launches until then.