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Upcoming NFO in November 2023

18 September 20246 mins read by Angel One
NFOs allow you to access mutual funds early on and experience maximum compounding gains. Check out the latest NFOs to find out which one is the right fit for your financial goals!
Upcoming NFO in November 2023
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What Is a New Fund Offering?

A New Fund Offering (NFO) is the initial offer of a mutual fund or Exchange-Traded Fund (ETF) to investors. It is similar to an Initial Public Offering (IPO), where a company raises money from the public by selling shares. During an NFO, investors can buy units of the fund at a fixed price. The NFO period typically lasts for a few days.

Like any investment, NFOs carry risk. Make sure you check NFO details from the Scheme Information Deed (SID), the document for the NFO-related information, such as the objective of the scheme, fund manager details, entry and exit load, etc. An NFO may have a minimum investment requirement showing the lowest sum of money an investor can contribute to participate in the scheme.

Upcoming NFOs in November 2023

Scheme Name Category Type Open Date Close Date
Kotak FMP Series 323 Debt-Fixed Maturity Plans – Debt Close Ended October 26, 2023 November 1, 2023
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund Index Funds/ETFs Open Ended October 20, 2023 November 3, 2023
Zerodha Nifty LargeMidcap 250 Index Fund Index Funds/ETFs Open Ended October 20, 2023 November 3, 2023
Bajaj Finserv Banking and PSU Fund Debt-Banking and PSU Fund Open Ended October 25, 2023 November 6, 2023
Helios Flexi Cap Fund  Equity-Flexi Cap Fund Open Ended October 23, 2023 November 6, 2023
Bandhan Nifty Alpha 50 Index Fund Index Funds/ETFs Open Ended October 25, 2023 November 6, 2023
Kotak Consumption Fund Equity-Sectoral/Thematic Open Ended October 25, 2023 November 8, 2023
Aditya Birla Sun Life Transportation and Logistics Fund Equity-Sectoral/Thematic Open Ended October 27, 2023 November 10, 2023
DSP Gold ETF Fund of Fund Fund of Funds Open Ended 03-Nov-2023 November 10, 2023
Quant Momentum Fund Equity-Sectoral/Thematic Open Ended October 30, 2023 November 13, 2023

Benefits of Investing in an NFO

The following are some of the top benefits of investing in NFOs:

  1. Early Investment OpportunityNFOs allow you to join a new fund at the very beginning of the fund’s journey. Therefore, the number of periods of compounding your fund will experience will be maximum. 
  2. Lower Initial NAV – The initial NAV of the fund is typically lower than the NAV after the fund is launched. 
  3. Portfolio Diversification – You can diversify your portfolio using NFOs to incorporate new asset classes, industries, or techniques.

Limitations of NFOs

The following are some of issues related to investing in NFOs:

  1. No Track Record – NFOs lack performance data because they are brand-new funds. To evaluate possible returns, investors are required to rely on the fund manager’s track record and the offer document details.
  2. High Initial Expenses – The overall profits for investors may be impacted by NFOs’ potential for greater initial costs, including marketing and distribution charges. This also happens because initially the total AUM is low and thus with high fixed expenses, the expense ratio becomes high.
  3. Bad timing – Unlike stocks, the NAV of a fund does not depend on the demand or supply of the fund itself, but on the value of the underlying assets. Therefore, even though the choice and proportion of investments are good, your NFO investment may suffer losses in the short term.
  4. Closed-ended Funds – In case your fund is closed-ended, you may not be able to sell your investment for a specific period of time.

In summary, NFOs provide you with opportunities to access new and potentially promising investment options. However, they also have risks. Hence, it is important that you carefully assess your own financial goals, risk tolerance, and the details of the NFO before investing.

Final Words

Follow the Angel One blog for more information on the latest updates on the stock market. If you are new to the stock market, open your free demat account with Angel One today!

Disclaimer: This article is written for educational purposes only. The securities mentioned are only examples and not recommendations.

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