“Collections are not a concern. However, offline independent financial advisors have suggested waiting for the lockdown to be lifted, so that they can also participate in the NFO,” said George Joseph, chief executive officer and chief investment officer at ITI MF, which has put large-cap NFOs on hold.
“We will float the NFO as soon as the lockdown is lifted. Current valuations are attractive and can benefit investors in the long run,” added Joseph.
Since March 23, all MF branches have stayed shut to adhere to the social distancing guidelines laid down.
Recently, L&T MF had extended subscription timelines of two of its NFOs — L&T Nifty50 Index Fund and L&T Nifty Next50 Index Fund. An email query sent to L&T MF didn’t elicit any response at the time of going to press.
Experts say some MFs may delay their NFO plans and wait for more stability in the markets.
“Due to the lockdown situation, fund managers are unable to do roadshows. Digitally pitching new funds to investors can be challenging, especially in the current environment. Some MFs may consider holding off their NFOs until investor sentiment turns more positive, so that sizeable flows can be garnered,” added Kumar.