CALCULATE YOUR SIP RETURNS

Upcoming NFOs in October 2024

02 October 20245 mins read by Angel One
NFOs give investors the opportunity to invest in mutual funds from the beginning, offering the potential for early growth. Explore upcoming NFOs in October 2024.
Upcoming NFOs in October 2024
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Asset Management Companies (AMCs) introduce new Fund Offers (NFOs) to create new mutual fund schemes. These companies design and manage the funds, allowing investors to invest during the initial phase. NFOs usually have a set subscription period, after which they become available for regular investments. Let’s look at the upcoming NFOs in October 2024. 

Upcoming NFOs in October 2024

Fund Name Initial Investment (In ₹) NFO Start Date NFO End Date
Samco Multi Cap Reg Gr 5000 Oct 10, 2024 Oct 24, 2024
Kotak MNC Reg Gr 100 Oct 07, 2024 Oct 21, 2024

Benefits of Investing in NFOs

Below are some key benefits of investing in both existing funds and NFOs. 

  1. Long-Term Investment: They are ideal for those looking to invest in a specific type of mutual fund over the long term, making them well-suited for long-term investors.
  2. Access to New Asset Classes: Investing in an NFO can provide exposure to new asset classes or stock market indices, enhancing your portfolio’s diversification.
  3. Lower Expense Ratios: One of the key benefits of NFOs is their typically low expense ratio. This refers to the percentage of funds allocated to administrative, management, and marketing costs. Lower expenses can translate into improved net returns for investors.
  4. Innovative Investment Approaches: NFOs, especially those with close-ended structures, allow for investments in fresh and innovative strategies that may not be offered by existing open-ended funds.

Things to Consider Before Investing in an NFO

Here are a few things to consider several factors before investing in an NFO:

  1. No Track Record: One of the main downsides of NFOs is the absence of a performance history. Without past data, evaluating whether the fund can achieve its objectives is hard, requiring you to rely on the fund manager’s vision and strategy.
  2. Higher Risk: Since NFOs come with no proven track record, they often involve greater risk compared to established funds. Market fluctuations and unforeseen events can significantly impact their performance, leading to potential losses.
  3. Liquidity Limitations: While open-ended NFOs offer some liquidity, close-ended ones lock your investment for a fixed period. This can be restrictive if you need access to your funds before the lock-in period is over.
  4. Understanding Objectives: It’s important to understand the NFO’s objectives, as they reveal key details about risks, potential returns, asset allocation, and liquidity. Assess why the fund is being launched and how the fund manager plans to allocate the raised capital.

Conclusion

When carefully researched, NFOs can be a good addition to your investment portfolio. However, they come with risks, like any other investment. It’s important to review the NFO details in the Scheme Information Document (SID), which provides key information about the NFO, including its goals, fund manager details, and any entry or exit fees.

Elevate your savings strategy with our easy-to-use Angel One SIP Calculator. See the impact of consistent investing. Your future self will thank you. Start planning today!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

 

We're Live on WhatsApp! Join our channel for market insights & updates

Grow Wealth, Start SIP Now!

Start Your Mutual Fund Investments Journey Today

Join our 2 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link
Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Enjoy ₹0 Account Opening Charges