Calcutta, May 15: The secondary stock market has caught cold and the primary market issues have started sneezing.

This may come as a rude shock even to those investors who have put their money in mutual fund public offers in recent months.

Since January, as many as 20 new diversified equity funds lined up to tap the market, of which five are yet to open and two are currently on offer. Of the 13 funds opened for subscription, six reopened for repurchase with a net asset value (NAV) below the offer price of Rs 10.

Another six are hovering marginally above Rs 10, except for BOB Diversified Fund, the net asset value of which was Rs 17.92 as on May 13.

Among the three big initial offers ? Franklin Flexi Cap Fund (mopping up Rs 1,950 crore), Reliance Equity Opportunities Fund (Rs 1,773 crore) and HDFC Premier Multi-Cap Fund (Rs 1,324 crore) ? only HDFC Premier Multi-Cap’s NAV was marginally higher at Rs 10.116 than the offer price of Rs 10 as on May 13.

According to analysts, this is a direct consequence of so many mutual funds clamouring for a raging stock market to rake in more money as assets under management.

Industry estimate is that almost Rs 10,000 crore have been put into maiden offers of mutual fund schemes so far in this calendar. However, most of the money is churned within the existing universe of mutual fund schemes and net addition to the industry assets has not been substantial, analysts point out.

Mid-cap stocks have been the flavour of the season. Fund houses, with mid-cap schemes in their portfolio, have joined the ‘flexi-cap’ bandwagon led by Franklin India Mutual Fund.