New Fund Offerings (NFO)
Get in on the ground floor with new mutual fund schemes. Discover early investment opportunities with potentially lower NAVs and innovative fund strategies.
Understanding New Fund Offerings (NFOs)
A New Fund Offering (NFO) is the first subscription offering for a new mutual fund launched by an asset management company (AMC). Similar to an IPO in the stock market, an NFO is the first time investors can subscribe to a new fund scheme.
NFOs are launched for a limited period during which investors can purchase units of the mutual fund scheme at a fixed price, typically at ₹10 per unit. After the NFO period ends, the fund opens for ongoing subscriptions and redemptions at the prevailing Net Asset Value (NAV).
Types of NFOs
- •Equity Funds: Invest primarily in stocks
- •Debt Funds: Invest in fixed-income securities
- •Hybrid Funds: Balanced mix of equity and debt
- •Thematic Funds: Focus on specific sectors or themes
- •Index Funds: Track a specific market index
Potential Advantages
- •Lower NAV: Initial units at ₹10 (psychological advantage)
- •Innovative Strategies: Access to new investment approaches
- •Unique Exposure: Access to new market segments
- •Equal Starting Point: All investors enter at the same price
How to Invest in NFOs
Research the NFO
Review the fund's investment objectives, strategy, fund manager's track record, and the AMC's reputation before making a decision.
Check Fund Documents
Go through the Scheme Information Document (SID) to understand investment strategies, risks, expenses, and exit loads.
Apply Through DSR Group
Complete your NFO application through our platform. We offer paperless applications with digital KYC verification.
Make Payment
Pay for your NFO subscription through multiple options including UPI, net banking, or NEFT/RTGS transfer.
Receive Units
Once the NFO closes, units are allotted at ₹10 each and reflected in your investment account within 5 business days.
Current NFO Opportunities
Stay Updated on New Fund Offerings
Our team continuously monitors upcoming NFOs from top AMCs in India. Contact our investment advisors to get personalized recommendations on current and upcoming NFO opportunities that align with your financial goals.
Speak with an AdvisorWhy Consider NFO Investments
Novel Investment Strategies
Access to innovative fund strategies that may not be available in existing funds.
Untapped Market Segments
Exposure to new or niche market segments with potential growth opportunities.
Diversification Opportunities
Add unique assets to your portfolio that complement your existing investments.
Equal Entry Advantage
All investors enter at the same NAV, creating an equal starting point.
Important Note
While NFOs can offer unique opportunities, they lack historical performance data for evaluation. It's important to assess the fund house's track record, fund manager's experience, and the fund's investment strategy before investing. Always align NFO investments with your financial goals and risk tolerance.
Our NFO Services
Comprehensive NFO Solutions
- NFO notifications and calendars
- Detailed NFO analysis and comparisons
- Expert recommendations and insights
- Paperless investment process
- SIP setup after NFO conversion
- Portfolio tracking and performance analysis
- Zero commission NFO investments
Frequently Asked Questions
What is the difference between an NFO and an existing mutual fund?
An NFO is a new fund scheme being offered for the first time, while existing mutual funds have an established track record and NAV history. NFOs are available at a fixed initial price (typically ₹10 per unit) during the subscription period.
Is investing in an NFO better than existing mutual funds?
Not necessarily. NFOs lack performance history for evaluation, which can make them riskier. However, they may offer unique investment strategies or market exposures not available in existing funds. Both options should be evaluated based on your investment goals.
What is the minimum investment amount for NFOs?
The minimum investment amount typically ranges from ₹1,000 to ₹5,000, depending on the specific NFO. Some funds also offer a lower entry point for SIP investments post-NFO period.
How long does the NFO period last?
Most NFOs remain open for subscription for 15-30 days. Once closed, the fund collects all the money raised, finalizes the unit allotment, and begins investing according to its stated objectives.
When will I get units after investing in an NFO?
Units are typically allotted within 5 business days after the NFO closes. The allotment is made at the initial offer price (usually ₹10 per unit), and you can view these units in your DSR Group account once processed.
Start Your NFO Investment Journey Today
Access exclusive new fund offerings with expert insights and zero commissions. Our investment advisors can help you select NFOs that align with your financial goals.