What is the cycle of NFO in ten rupees… today let us give you complete information about it

New Fund Offer, Public Issue Type of Mutual Fund. When mutual fund houses launch a scheme for the first time under subscription, it is called NFO or new fund offer, but each mutual fund has multiple schemes? Then what is special in NFO?

NFO in ten rupees These messages are coming a lot on Riya’s mobile and mail. something new everyday NFO (NFO-New Fund Offer) arrives in their mailbox. How is it getting units of NFO for ten rupees? Before Riya’s confusion, let us understand that what is NFO after all? mutual funds (Mutual Funds) So you must know that only mutual fund companies take out NFO. That is, New Fund Offer, Public Issue Type of Mutual Fund. When a mutual fund house subscribes to a scheme for the first time (SubscriptionIt is called NFO or New Fund Offer, but each mutual fund has different schemes. Then what is special in NFO?

Let’s know everything about the scheme

Asset management companies running mutual funds launch NFOs so that they can make new investments with your money. People will subscribe and MF house will get money, with this money they will make purchases.

Now this is understood, but what is the point of getting a unit for 10 rupees? Usually the price of any NFO is fixed at Rs 10 per unit. Fund managers launch NFOs based on the current trend of the market.

Didn’t this matter?? Understand that due to Kovid, the need for an Environment, Social and Governance (ESG) fund was felt this year, just suddenly ESG funds came in the market.

These funds invest most of their share in the shares or bonds of such companies whose investment plans take special care of the environment and the community. Image SBI SBI Magnum Equity ESG Fund There are actually two types of NFOs. One of the open ended funds – in which you can invest anytime.

Two – You can invest money in closed ended funds only for a fixed period, after which their subscription stops. Well, back to Riya’s story. For all the people like Riya who want to invest in NFO, then first of all check whether NFO is offering something in which there is something special which is not available in the existing fund.

Mohit Gang, co-founder and CEO, MoneyFront, says, “If an NFO is offering you an opportunity to invest in a new sector, then it is good for your portfolio.” It is important to know that NFOs do not have any track record. However, one can still see the performance of the fund manager’s past performance.

Money9’s advice

Money9’s advice is that someone has come to the NFO market and there is a big discussion in the market, don’t invest money in it just thinking that. There is risk in NFO. But, you can invest money in it to add new options to the portfolio. Just, first understand its advantages and disadvantages well.

Himali Patel, Money9

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