The markets are seeing a flood of NFO’s in mutual funds. These are mostly in the thematic category and are following up on the success of a few earlier themes. Thematic funds are not simple products. They cannot be bought at any time in the market cycle. They need to be bought exactly when the particular theme is out of favour and trades cheaply. The themes of funds being launched now can hardly be considered either cheap or out of favour. This only means that the current IPOs could see big monies collected at the wrong time in the market cycle. What this trend foretells is that troubled times could lie ahead for adventurous investors in these NFOs. But, investors hardly seem to bother. And, manufacturers are happy to launch new products as they significantly boost their asset-gathering capabilities. Hardly anyone is worried or fearful while investing in NFOs. And, money is flooding every AMC filling its asset mobilization targets with utmost ease. The AUM party is now in full swing.