What is an NFO?
A New Fund Offering (NFO) is the launch of a new mutual fund scheme by an Asset Management Company (AMC). It is an opportunity for investors to invest in a newly established fund. NFOs can be of various types, including equity funds, debt funds, hybrid funds, and thematic funds. The primary objective of launching an NFO is to raise capital from investors to invest in specific asset classes according to the fund's investment objectives. NFOs are typically released when the fund manager identifies a new investment opportunity or market trend that aligns with the investment strategy of the fund.
Apply for NFO with m.Stock
ICICI Pru Rural Opportunities Fund - Regular (G)
Start Date9 January 2025End Date23 January 2025Min. Investment₹ 5000ICICI Pru Rural Opportunities Fund - Regular (IDCW)
Start Date9 January 2025End Date23 January 2025Min. Investment₹ 5000ICICI Pru Rural Opportunities Fund - Direct (G)
Start Date9 January 2025End Date23 January 2025Min. Investment₹ 5000
Benefits of Investing in NFO
- Exposure to new avenues
- Early entry opportunity
- Opportunity to participate in sectoral growth
- Lower initial asset base
Types of New Fund Offer
Most NFO mutual funds are open-ended. In other words, they do not have a fixed maturity period and allow investors to buy and sell units at NAV throughout the fund's existence. Unlike closed-ended funds, open-ended funds continue to accept subscriptions and redemptions from investors, providing liquidity and flexibility. You can enter and exit the fund at your convenience, making open-ended funds suitable for those with short-term or long-term investment horizons
Closed-ended funds have a fixed maturity period. During the NFO period, investors subscribe to a fixed number of units, and the fund is closed for further subscriptions thereafter. These funds are listed on stock exchanges after the NFO period, allowing investors like you to buy and sell units at market prices. Closed-ended funds are well-suited for investors seeking a defined investment horizon and stable returns.
Interval funds consist of some features of closed-ended and open-ended funds, both. They accept subscriptions and redemptions at specific intervals, such as quarterly or semi-annually, during the NFO period. Once the NFO ends, the fund operates as a closed-ended scheme, allowing trading of units on the stock exchange. Interval funds offer a balance between fixed maturity and liquidity, making them suitable for investors with medium-term investment horizons.
How to invest in an NFO on m.Stock?
- 1
Login to m.Stock app
- 2
On Mutual fund page, search for desired NFO & click on Invest Now
- 3
Enter investment amount and place order