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