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Capture the opportunity to invest in potential growth With NFO

Capture the opportunity to invest in potential growth With NFO

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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.

What is an NFO?

Apply for NFO with m.Stock

  • ICICI Pru Rural Opportunities Fund - Regular (G)

    ICICI Pru Rural Opportunities Fund - Regular (G)

    Start Date
    9 January 2025
    End Date
    23 January 2025
    Min. Investment
    5000
  • ICICI Pru Rural Opportunities Fund - Regular (IDCW)

    ICICI Pru Rural Opportunities Fund - Regular (IDCW)

    Start Date
    9 January 2025
    End Date
    23 January 2025
    Min. Investment
    5000
  • ICICI Pru Rural Opportunities Fund - Direct (G)

    ICICI Pru Rural Opportunities Fund - Direct (G)

    Start Date
    9 January 2025
    End Date
    23 January 2025
    Min. 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

Open-Ended Funds

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

Close Ended Funds

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

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?

  • 2

    On Mutual fund page, search for desired NFO & click on Invest Now

  • 3

    Enter investment amount and place order

Login and start investing

FAQs

What is NFO?

A New Fund Offering (NFO) is the initial offer of units of a mutual fund scheme to the public for subscription. It marks the launch of a new mutual fund scheme and allows investors to buy units of the fund at the offer price during the subscription period.

What is the difference between an NFO and IPO?

While both NFOs and Initial Public Offerings (IPOs) involve the issuance of securities to the public, they differ in terms of the investment product being offered. NFOs are launched by mutual funds to introduce new schemes to investors, whereas IPOs involve the sale of shares by a company to the public for the first time.

Why invest in NFO?

Investing in an NFO offers several benefits, including early entry into a new mutual fund scheme, access to innovative investment strategies, potential for higher returns, and the opportunity to diversify one's investment portfolio.

How to choose the right NFO mutual fund?

When selecting an NFO mutual fund, you should take into account key aspects such as the investment goal of the fund, asset allocation strategy, track record of the fund house, the expertise of the fund manager, expense ratio, risk profile, and the investor's own financial goals and risk tolerance.

How to apply for an NFO in India?

Investors can apply for an NFO in India through various channels, including online platforms, stockbrokers, mutual fund distributors, or directly through the Asset Management Company (AMC) offering the NFO. The application process typically involves filling out a subscription form and making the required payment during the subscription period.