In this episode of the Capitalmind Podcast, Deepak and
Shray dissect the surge in New Fund Offerings
(NFOs) by mutual funds, dissecting why fund houses are
launching new schemes and who truly benefits from them—whether it’s
the AMC, the customer, or intermediaries like distributors. We also
discuss the economics of fund distribution, the role of
intermediaries, and how to identify the best options for your
investments.
The episode also ventures into the often not talked
about side of financial advisory, the unrealistic expectations of
managing wealth independently, and the vital role of professional
advisors. Additionally, they explore the cyclic nature of NFOs,
investor hype in bull markets, and the risks of market
oversaturation, concluding with advice on navigating financial
products during booming market conditions.
Whether you’re a seasoned investor or just getting
started, this episode is packed with insights that can help you
make informed decisions.
Timestamps
00:00 Introduction to the Capitalmind Podcast and
disclaimer
00:43 Overview of New Fund Offerings (NFOs)
02:29 Historical Context and SEBI Regulations
03:24 Fund Categories and Flexibility
05:00 The Role of Fund Managers and Themes
08:50 Marketing and Distribution Economics
12:04 Impact on Customers and Fund Houses
29:47 Advertising and Expense Management
33:33 The Role of SEBI in Fund Innovation
34:29 The Impact of Fund Variety on Investors
35:30 The Importance of Innovation in the Mutual Fund
Industry
36:59 Challenges of Fund Categorization
42:43 The Role of Financial Advisors and RIAs
49:55 Mutual Fund Distributors vs. Bank RMs
55:27 When to Go Direct with Your Investments
01:05:50 The Cycle of NFOs in Bull Markets
01:09:01 Conclusion and Final Thoughts
