What Is New Fund Offer?
A New Fund Offer (NFO) is the first subscription offering for a new fund launched by an investment company. Investors can buy units at a low initial price, aiming to capitalize on potential growth as the fund begins market operations.
List Of Upcoming NFO In August 2024
| Scheme Name | Category | Type | Open Date | Close Date | Risk |
| Motilal Oswal Manufacturing Fund | Equity-Sectoral/Thematic | Open Ended | 19-Jul-24 | 02-Aug-24 | Very High |
| Groww Nifty EV & New Age Automotive ETF | Others-Index Funds/ETFs | Open Ended | 22-Jul-24 | 02-Aug-24 | Very High |
| Groww Nifty EV & New Age Automotive ETF FOF | Others-Index Funds/ETFs | Open Ended | 24-Jul-24 | 07-Aug-24 | Very High |
| Kotak Nifty Midcap 50 Index Fund | Others-Index Funds/ETFs | Open Ended | 25-Jul-24 | 08-Aug-24 | Very High |
| Invesco India Manufacturing Fund | Equity-Sectoral/Thematic | Open Ended | 25-Jul-24 | 08-Aug-24 | Very High |
| Bajaj Finserv Large Cap Fund | Equity-Large Cap Fund | Open Ended | 29-Jul-24 | 12-Aug-24 | Very High |
| SBI Innovative Opportunities Fund | Equity-Sectoral/Thematic | Open Ended | 29-Jul-24 | 12-Aug-24 | Very High |
| ICICI Prudential Nifty Metal ETF | Others-Index Funds/ETFs | Open Ended | 01-Aug-24 | 12-Aug-24 | Very High |
| HDFC Nifty500 Multicap 50:25:25 Index Fund | Others-Index Funds/ETFs | Open Ended | 06-Aug-24 | 20-Aug-24 | Very High |
Introduction Of Upcoming NFO 2024
Motilal Oswal Manufacturing Fund
Motilal Oswal Manufacturing Fund focuses on the manufacturing sector, aiming to capitalize on the growth potential of companies engaged in production. The fund invests primarily in equity and equity-related instruments of manufacturing firms, seeking long-term capital appreciation through a carefully selected portfolio of promising manufacturing entities.
Groww Nifty EV & New Age Automotive ETF
Groww Nifty EV & New Age Automotive ETF tracks the Nifty Electric Vehicles and New Age Automotive Index, investing in electric vehicle (EV) and automotive technology companies. It provides investors exposure to the burgeoning EV market and new automotive technologies, reflecting the sector’s expected growth and innovation.
Groww Nifty EV & New Age Automotive ETF FOF
Groww Nifty EV & New Age Automotive ETF FOF operates as a fund of funds, investing primarily in the Groww Nifty EV & New Age Automotive ETF. This structure allows investors to indirectly invest in the electric vehicle and new automotive technology sectors, leveraging the growth of these industries through a diversified approach.
Kotak Nifty Midcap 50 Index Fund
Kotak Nifty Midcap 50 Index Fund aims to replicate the performance of the Nifty Midcap 50 Index, investing in mid-cap stocks listed on the index. The fund offers exposure to mid-sized companies that possess growth potential, making it suitable for investors looking for higher risk-adjusted returns from the mid-cap segment.
Invesco India Manufacturing Fund
Invesco India Manufacturing Fund invests in a range of manufacturing sectors, including automobiles, chemicals, and electronics. The fund seeks to benefit from the growth of the manufacturing industry in India, focusing on companies with robust business models and the potential for sustained earnings growth.
Bajaj Finserv Large Cap Fund
Bajaj Finserv Large Cap Fund targets the large-cap segment, investing primarily in large-cap stocks across various sectors. The fund aims for stable growth by focusing on companies with strong market positions, proven track records, and the ability to withstand economic fluctuations.
SBI Innovative Opportunities Fund
SBI Innovative Opportunities Fund is designed to invest in innovative and high-growth companies across sectors. The fund seeks to identify and capitalize on new trends and technologies, providing investors with the opportunity to participate in the growth of transformative businesses and sectors.
ICICI Prudential Nifty Metal ETF
ICICI Prudential Nifty Metal ETF offers exposure to the metal sector by tracking the Nifty Metal Index. It invests in large and mid-cap metal companies, including those involved in mining, metal production, and related activities. The ETF is suited for investors looking to benefit from the cyclical nature of the metals industry.
HDFC Nifty500 Multicap 50:25:25 Index Fund
HDFC Nifty500 Multicap 50:25:25 Index Fund is designed to track the Nifty500 Multicap 50:25:25 Total Return Index, offering diversified exposure across large, mid, and small-cap stocks. The fund’s strategy is to maintain a balanced exposure, providing a blend of stability, growth, and potential for higher returns.
Upcoming NFO 2024 List – FAQs
A New Fund Offer (NFO) is an introductory sale phase of a new fund by an investment company. During this phase, units of the fund are available for purchase at a base price, providing early investors an opportunity to enter the fund at a potentially lower cost before it goes public.
NFOs are not calculated; they are priced by the asset management company launching the fund. The price usually starts at a nominal value like Rs. 10 per unit. Post-NFO, the unit price varies according to market conditions and fund performance.
To purchase an NFO using Alice Blue, first create an account on their platform. After logging in, navigate to the mutual funds section, select the desired NFO, and follow the instructions to invest. Alice Blue facilitates these transactions, providing a streamlined process for investors.
The main disadvantages of NFOs include lack of performance history, which makes their assessment risky. Initial marketing costs can be high, often absorbed by the fund, affecting initial returns. Moreover, they might not always offer additional benefits over existing funds with established track records.
Withdrawal from an NFO is possible, but it is subject to the fund’s lock-in period and exit load, if applicable. These conditions must be met before you can redeem your units. Early withdrawal could result in penalties or reduced returns.
Yes, you can sell units of an NFO once they are listed and trading begins, typically after the NFO period ends. The ability to sell depends on market demand and the liquidity of the fund. Sales are executed through the investment platform where the units are held.
