Let’s understand about what is NFO ? and the upcoming NFO Investment Opportunity for the Investors in September 2020 also the Methods by which they can Invest.

NFO- New Fund Offer is a Process to collect Capital from the Investors. Usually, NFO is Launched when the Fund House -AMC comes with a New Idea or Concept in the Market. Through such offers, investors can purchase units of a mutual fund at the subscription price, usually set at Rs.10 per unit. Both open-ended and closed-end funds are launched via new fund offers for a limited period, after which such mutual funds are traded in the market based on their corresponding net asset value (NAV).

As per SEBI Guidelines, A NFO is available for subscription maximum for 30 days. The initial Offer price to the Investors is Rs. 10, & the Collected fund is further invested in the Securities described in the Offer Documents of the NFO according to its objective and SEBI Regulations.

Types of NFOs are available: –

1. Close-ended funds

These types of Funds are available for a Limited corpus and to the Limited no of Investors. Once the Subscription Period is over, the Investors have to wait for the closing period to over for redemption or the Investor can sell the Units through stock exchange on the Prevailing NAV.

2- Open-ended funds

Open-ended funds are those types of Funds where there is no limit of the Units and the Investors. Most of the Mutual funds are usually are Open-Ended Funds and units are available at pre-determined NAV of Rs. 10 and can be Redeemed anytime as the Fund opens for subscription post listing. 

How NFO is a Good Opportunity?

The AMCs use NFO to raise money from the Investors to Purchase the NAV on the Cheaper rate @Rs. 10 as it is first to offer in the Market. Usually, each NFO comes with a New objective or Idea, and an investor can find good investment opportunities if the Fund objective matches with their Investment Objectives. NFO can be available for Equity Funds as well as Debt Funds also.

Do Research Properly before investing as just not the cheaper NAV and other parameters also matter if it comes to Investment of your Hard Earned Money.

How to Invest in an NFO?

There are two ways through which one can invest their money in NFO. Investing in NFO is overall a seamless process and one can choose any one of the below-mentioned methods for investment in NFO. 

Offline Method: – One Can Invest in NFO through any MF distributor by filling the form and giving the Cheque. It is as Simple as Buying any other Mutual Fund but there your KYC must be Completed before the Actual Investment. 

Online Method: – You Can Also Buy the NFO through Various Mobile Applications available in the Market, Through AMCs websites, through the online Platform available of NSE & BSE, Through the Distributors website, etc. Online methods are equally sophisticated and smooth like offline methods. You can make the payment through Online Banking, Debit Card, One Time Mandate, RTGS, etc.

Recommended Mobile Application for NFO Purchase- https://play.google.com/store/apps/details?id=com.trinityinvestcon&hl=en_US

Upcoming NFO & Their Objectives

NFO 1-                                    Axis Global Equity Alpha Fund of Fund(G)

Company                                 Axis Asset Management Company Ltd.

Scheme Name                         Axis Global Equity Alpha Fund of Fund(G)

Scheme Type                            Open ended scheme

Fund Manager                         Hitesh Das, R. Siva Kumar

Category                                  FoFs (Overseas)

Initial Offer Price                     10

Minimum Investment                5000

Additional Investment              100

Objective                                 To provide long term capital appreciation by predominantly investing in Schroder International Selection Fund Global Equity Alpha, a fund that aims to provide capital growth by investing in equity and equity related securities of companies worldwide. The Scheme may also invest a part of corpus in debt, money market instruments and / or units of liquid schemes in order to meet liquidity requirements from time to time.

Max Exit Load%                      0

Option Type                             Dividend, Growth

INVESTMENT PATTERN       Units / shares of Schroder International Selection Fund Global Equity

Dates                                        Open   04-Sep-2020    Close               18-Sep-2020

NFO-2                                     Invesco India Focused 20 Equity Fund

Company                                 Invesco Asset Management Company Pvt Ltd.

Scheme Name                          Invesco India Focused 20 Equity Fund

Scheme Type                            Open ended scheme

Benchmark Index                     S&P BSE 500 – TRI

Fund Manager                         Taher Badshah

Category                                  Equity – Focused Fund

Initial Offer Price                     10

Minimum Investment                1000

Additional Investment              1000

Objective                                 To generate capital appreciation by investing in up to 20 stocks across market capitalization.

Option Type                             Dividend, Growth

INVESTMENT PATTERN       Equity & Equity Related Instruments     Min 65     Max 100

Dates                                        Open 09-Sep-2020        Close 23-Sep-2020

NFO 3                                      Mirae Asset Equity Allocator FoF(G)

Company                                 Mirae Asset Investment Managers (India) Private Limited

Scheme Name                         Mirae Asset Equity Allocator FoF(G)

Scheme Type                            Open ended scheme

Benchmark Index                     NIFTY 200 – TRI

Fund Manager                         Bharti Sawant

Category                                  FoFs (Domestic) – Equity Oriented

Initial Offer Price                     10

Minimum Investment                5000

Additional Investment              1000

Objective                                 The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in units of domestic equity ETFs. There is no assurance that the investment objective of the Scheme will be realized.

Max Exit Load%                      0

Option Type                             Dividend, Growth

INVESTMENT PATTERN       Units of Domestic Equity ETF   Min      95        Max     100

Dates                                        Open    08-Sep-2020    Close                15-Sep-2020

Our Recommended NFO- Invesco India Focused 20 Equity Fund

Mutual Fund Investment are subject to market Risk. We are neither involved in any Distributor services nor RIA. All the View Are Personal.

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