loader2
Partner With Us

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
AXIS Quant Fund (G) Equity Sectoral / Thematic Jun 11, 2021 Jun 25, 2021 Deepak Agarwal INVEST
HDFC Banking & Financial Services Fund (G) Equity Sectoral / Thematic Jun 11, 2021 Jun 25, 2021 Anand Laddha INVEST
BOI AXA Bluechip Fund (G) Equity Large Cap Fund Jun 08, 2021 Jun 22, 2021 Dhruv Bhatia INVEST
Kotak Nifty 50 Index Fund (G) Others Index Fund May 31, 2021 Jun 14, 2021 Devender Singhal 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
ELSS
ELSS

Podcast

Exclusive podcast on HDFC Asset Allocator FoF NFO by Mr. Ashok Kanawala, Vice President - Products & Distributor Alliances, HDFC AMC
Exclusive podcast on Canara Robeco Focused Equity Fund NFO by Mr. Chirag Mehta, Head Products , Canara Robeco AMC

FAQs

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.
Open an Account

Open an account and get a free subscription from MoneyControl, ET Prime and many more...

OTP sent to +91 1234567890

Didn’t received OTP? Resend

00:30

iciciDirect-money-logo
iciciDirectMoney-App

Get Research Backed Recommendations.

Download The app now

or Scan below QR Code To download app

QRcode