Mutual fund companies in Delhi

For instance, some investors may trust only large funds or some may trust funds that are large internationally but may be small in India.

Some of the fund houses maybe trying to take advantage of the bull market and launch schemes in categories where they don't have presence, says Tanwir Alam, Founder and MD of Fincart Mutual fund companies in Delhi.

"Over the last two to three years there has been no bumper NFOs because no new set of investors have come in. Many people still believe that an NFO is cheaper because the units are available at Rs 10. They think it is similar to getting stocks at par. But that is not the case,'' he says.