NFO Mutual Funds in February 2023

8 September 2023
4 mins read
by Angel One
Mutual fund companies announce new NFO mutual fund investments to raise capital funds from investor groups. Read the article to know about NFO mutual funds in February 2023.
NFO Mutual Funds in February 2023

When a mutual fund company launches a new mutual fund investment scheme it is called NFO or New Fund Offerings. Like IPO, NFO is the maiden offer made by an Asset Management Company on a subscription basis. In this article, we have listed the new NFO mutual funds that will open for subscription in February 2023. 

What is NFO?

An NFO occurs when an asset management company announces a new scheme to raise funds to buy securities. However, unlike IPOs, NFOs are marketed less aggressively, targeting a specific group of investors. As a result, upcoming NFOs in mutual funds often go unnoticed.   

The money gathered by launching an NFO is used to buy several investment securities. It is important to understand that NFOs are offered for a limited period, called the offer period. Investors buy major units in the new mutual fund during this period. 

Companies can issue new fund offers for new schemes or add new securities to existing schemes.

Types of NFOs

Mutual funds are primarily two kinds- open-end and close-ends. 

Open-ended funds: A new fund open-ended mutual fund announces buying new shares on a specific date. For open-ended mutual funds, the units can be bought during a new fund offering or after. Usually, for open-ended funds, the number of units is not restricted, and investors can buy or sell them through brokerage firms. 

Mutual fund companies release daily reports on the Net Asset Value of an open-ended fund.

Close-ended funds: As the name suggests, the number of units available in a closed-end mutual fund is restricted. The fund closes for new investors after the NFO period gets over. Investors can buy the units of close-ended NFO mutual funds from the brokerage on the launch date. 

Upcoming NFOs in February 2023

The names of the NFO mutual funds in February 2023 are given below.

Fund’s Name ISIN Number  Offer Close 
Kotak Banking & Financial Services Fund (G) INF174KA1MA7 February 20, 2023
Mirae Asset Flexi Cap Fund (G) INF769K01JG8 February 17, 2023
Axis Business Cycle Fund (G) INF846K019N8 February 16, 2023
PGIM India CRISIL IBX Gilt Index Apr 2028 Fund (G) INF663L01X54 February 16, 2023
DSP NIFTY SDL Plus G Sec Sep 2027 50:50 index Fund INF740KA1SE1 February 15, 2023
Nippon India NIFTY SDL Plus G Sec June 2029 Mat 70:30 Idx Fd Rg Growth INF204KC1AF3 February 14, 2023
IDFC Crisil IBX Gilt April 2032 Index Fund Regular Growth INF194KB1FI9 February 14, 2023
Kotak NIFTY SDL July 2033 Index Fund (G) INF174KA1MG4 February 13, 2023
Aditya Birla Sun Life CRISIL IBX SDL June 2032 Index Fund (G) INF209KB12S4 February 13, 2023
ITI Flexi Cap Fund (G) INF00XX01CL3 February 10, 2023
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund (G) INF754K01RG3 February 10, 2023
UTI Nifty SDL Plus AAA PSU Bond Apr 2026 75:25 Index Fund (G) INF789F1AXK8 February 08, 2023

Check out the Kotak Mutual Funds AMC Page

Advantages and disadvantages of investing in NFOs 

Investing in a new NFO mutual fund is an exciting way to diversify your portfolio, but there are a few concerns you should know. 


Opportunity to explore a new fund: You get a chance to invest in a new scheme, meeting the specific needs of an investor group. 

No large flows: Investors can invest in closed-ended funds through new fund offerings. It allows fund managers to select a good amount of securities according the theme of the fund and track performance.

Flexibility: NFO mutual funds offer flexibility to fund managers to select securities in the market. Fund managers have the freedom to choose stocks according to the objective of the fund. 

Lock-in: Since NFO funds come with minimum lock-in. It gives freedom to fund managers to utilize the period to generate returns and bar investors from withdrawing funds during market ups and downs.  


No track records: There is no historical data to compare the performance of the fund before investing. Investors in NFO mutual funds have to rely on the prospectus published by the AMC before investing. 

High expense: An NFO may cost higher than an old fund. It is because a large sum is spent on marketing and paying commissions to intermediaries. 

No additional benefit: There is no additional benefit to investing in a new fund offer like an IPO. 

Final words

You can invest in the NFO mutual funds in February 2023 from the list above. However, we recommend you to read the prospectus and terms and conditions before investing. Explore more investing options across various asset categories with Angel One if you want to diversify your portfolio.