Many fund houses have exhausted the SEBI-specified fund categories, making New Fund Offers (NFOs)—especially Fund of Funds (FoFs)—an appealing way to raise fresh AUM. With equity markets trading at elevated P/E levels and global macroeconomic uncertainties (e.g., ongoing tariff risks), managers may favor FoFs for their flexibility to shift across asset classes and safeguard investors.

For deeper insights, please read the Business Standard article by Mr Sanjeev Sinha.