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Upcoming NFOs in January 2024

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 NFOs in January 2024
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As the financial landscape continues to evolve in 2024, investors are always on the lookout for promising opportunities to diversify their portfolios and maximise their returns. 

New Fund Offers (NFOs) present one more avenue, offering investors a chance to participate in freshly launched mutual funds or investment schemes. January 2024 is set to usher in an array of NFOs, each with unique strategies and objectives tailored to cater to varying investor needs.

What Is a New Fund Offering?

A New Fund Offering 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. Ensure you check NFO details from the Scheme Information Deed (SID), the document for the NFO-related information, such as the scheme’s objective, 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 January 2024

Scheme Name Type Category Sub-Category Open Date Close Date Minimum Investment (₹)
Aditya Birla Sun Life Fixed Maturity Plan – Series US (100 days) Closed Ended Debt Fixed Maturity Plan/Income January 04, 2024 January 09, 2024 ₹1,000
Axis Fixed Term Plan – Series 119 (71 Days) Closed Ended Debt Fixed Maturity Plan/Income January 03, 2024 January 09, 2024 ₹5,000
Tata Gold Exchange Traded Fund Open Ended Others ETFs Fund January 02, 2024 January 09, 2024 ₹100
Tata Silver Exchange Traded Fund Open Ended Others ETFs Fund January 02, 2024 January 09, 2024 ₹100
Kotak FMP Series 327 Closed Ended Debt Fixed Maturity Plans January 08, 2024 January 10, 2024 ₹5,000
Zerodha Nifty 1D Rate Liquid ETF Open Ended Others ETFs Fund January 08, 2024 January 12, 2024 ₹500
Tata Gold ETF Fund of Fund Open Ended Others FoFs Domestic January 02, 2024 January 16, 2024 ₹5,000
Tata Silver ETF Fund of Fund Open Ended Others FoFs Domestic January 02, 2024 January 16, 2024 ₹5,000
Quant Consumption Fund Open Ended Equity Sectoral / Thematic January 05, 2024 January 18, 2024 ₹5,000
Sundaram Multi Asset Allocation Fund Open Ended Hybrid Multi Asset Allocation January 05, 2024 January 19, 2024 ₹100

Benefits of Investing in an NFO

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

  1. Early Investment Opportunity – NFOs 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.

Other Upcoming NFOs in January 2024

These below-listed NFOs have filed for the NFOs but are not yet listed with the minimum investment on the AMFI.

Fund/Scheme Name Fund Category Fund Sub-Category Open Date Close Date
Old Bridge Focused Equity Fund Equity Focused Fund January 17, 2024 January 19, 2024
Mirae Asset Multi Asset Allocation Fund Hybrid Multi Asset Allocation January 10, 2024 January 24, 2024
Groww Banking & Financial Services Fund Equity Sectoral / Thematic January 17, 2024 January 31, 2024
DSP Nifty Healthcare ETF Others ETFs Fund January 11, 2024 January 25, 2024
Bandhan Multi Asset Allocation Fund Hybrid Multi Asset Allocation January 10, 2024 January 24, 2024
WhiteOak Capital Banking & Financial Services Fund Equity Sectoral / Thematic January 16, 2024 January 30, 2024

Final Words

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. 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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