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What is NFO?

A new fund offer (NFO) is a first-time subscription offer for a new scheme that has been launched by an asset management company. The fund house can launch an NFO around a theme or simply to complete their product basket. Once the NFO is over, the fund will reopen for subscription again and investors have the option to subscribe at the prevailing net asset value (NAV).

NFO (New Fund Offering) Mutual Fund

Fund/Scheme Name Fund Category Fund Sub-Category Open Date Close Date Fund Manager Action
Nippon India Flexi Cap Fund - Regular (G) Jul 26, 2021 Aug 09, 2021 Manish Gunwani INVEST
TRUSTMF Short Term Fund - Regular (G) Debt Short Duration Fund Jul 20, 2021 Aug 03, 2021 Anand Nevatia INVEST
ICICI Pru FMCG ETF Others ETFs Fund Jul 20, 2021 Aug 02, 2021 Kayzad Eghlim INVEST
Tata Business Cycle Fund (G) Equity Sectoral / Thematic Jul 16, 2021 Jul 30, 2021 RahulSingh INVEST
Mirae Asset Nifty Financial Services ETF Others ETFs Fund Jul 22, 2021 Jul 29, 2021 Ekta Gala INVEST

Steps to invest in NFO through ICICIdirect.com

  • Step 1 Login to your ICICIdirect.com account
  • Step 2 Go to Mutual Funds
  • Step 3 Select a NFO/FMP under Mutual Funds login page
  • Step 4 Provide investment details and confirm

Comparing NFO with Equity IPO

An equity IPO is done by a single company, which often seeks capital for expansion or to give an exit to an existing investor. On the other hand, an NFO from a mutual fund collects money from investors and allocates that to a basket of securities (stocks or bonds or government securities and so on), based on a stated strategy.

Important document

A complete guide for mutual fund investments. Click on the link to read the ICICIdirect Monthly MF Report.

Videos

NFO Corner

HDFC Asset Allocator Fund of Fund

ELSS
Aditya Birla Sun Life Multi- Cap Fund NFO Speaker: Mr. Mahesh Patil CIO- Aditya Birla Sun Life AMC Limited
ELSS
Canara Robeco Focused Equity Fund NFO Mr. Shridatta Bhandwaldar Head- Equities, Canara Robeco AMC
ELSS
Aim to give your portfolio a boost of healthcare Presenting ICICI Prudential Healthcare ETF. NFO closes on May 14,2021.
ELSS
ICICI Prudential Flexicap Fund NFO by Mr. Chintan Haria – Product Development & Strategy, ICICI Prudential AMC Ltd.
ELSS
NFO Demystified – Kotak Global Innovations Fund NFO page, Mr. Arjun Khanna, VP & Fund Manager – Equity, Kotak Mahindra AMC Ltd.

Podcast

Sovereign Gold Bond
Exclusive podcast on HDFC Asset Allocator FoF NFO by Mr. Ashok Kanawala, Vice President - Products & Distributor Alliances, HDFC AMC
Sovereign Gold Bond
Exclusive podcast on Canara Robeco Focused Equity Fund NFO by Mr. Chirag Mehta, Head Products , Canara Robeco AMC
Sovereign Gold Bond
ICICI Prudential Flexicap Fund NFO by Mr. Chintan Haria – Product Development & Strategy, ICICI Prudential AMC Ltd.

FAQs

What is NFO?
A new fund offer (NFO) is a first-time subscription offer for a new scheme that has been launched by an asset management company. The fund house can launch an NFO around a theme or simply to complete their product basket. Once the NFO is over, the fund will reopen for subscription again and investors have the option to subscribe at the prevailing net asset value (NAV)
With the help of an NFO, the fund house raises money from the public to purchase securities such as equity shares, bonds, and so on, in the market. New fund offer allows the fund house to raise money to complete its basket of offerings as per SEBI category classification. For example if an AMC does not have a Multicap fund, it can launch an NFO to offer that product to investor. Sometime NFOs are launched as fund management team believes there are good investment opportunities prevalent relating to a particular theme at that point in time. You need to put in your judgment and wisdom before settling for one.
  • Fund House Reputation
  • Fund Objective
  • Theme of NFO
  • Asset Allocation
  • Risk factor
  • Cost of investment
  • Minimum subscription Amount
  • Investment Horizon
  • Risk classification
Before investing in NFOs one should consider one’s own investment objective, investment horizon and own asset classification. If the NFOs objective and other factors are in line with your own objective, horizon and asset allocation than only you should invest in an NFO or else should give it a miss
In a new fund offer, the opportunity to subscribe to the scheme is available only for a limited period usually 30days. The investors may purchase units of the mutual fund scheme during the pre-defined period and subscribe to the NFO at an offer price. This is usually fixed at Rs 10.
The process of allotment of Units generally gets completed within 5 (five) business days from the date of closure of the New Fund Offer Period. The asset management company issues units in dematerialized form to a unit holder in a scheme within two working days of the receipt of request from the unit holder
In an open ended scheme, redemption and switch out gets commenced not later than 5 business days from date of allotment. It is advised to re-evaluate your options in case the preferred NFO investment horizon happens to be longer than your investment horizon.
In terms of SEBI regulations, a complete statement of the Scheme portfolio will be sent to all unit holders, within ten days from the close of each month whose email addresses are registered with the Mutual Fund. AMC will disclose the portfolio within ten days from the close of the month in which the NFO period was closed. Example, if NFO was closed on 15th March, AMC will disclose the portfolio closer to 10th April
The overall cost involved in investment is one of many parameters that decide your potential returns. All the expenses relating to the NFO are borne by the Asset management company and investors do not have any additional charge for investing. Once the NFO opens up, expense ratio up to 2.25% of the assets can be charged by the AMC depending on the quantum of assets garnered during the NFO.
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