NFO to Open This Week :The craze for New Fund Offer (NFO) has increased in the last few months. Just as investors want to invest in IPO for profit, similarly, NFO is also being seen as an attraction now. One reason for this is that their performance has also been better in the ongoing market rally. Investors investing in it are getting good returns. Seeing this, mutual fund companies are also excited and NFOs are being launched in the market one after the other. Some new fund offers are also going to be launched in the remaining days of this week.
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Bandhan Nifty Bank Index Fund
Bandhan Asset Management Company is launching its New Fund Offer (NFO) Bandhan Nifty Bank Index Fund on 8 August 2024. Investments can be made in it till 22 August 2024. This scheme belongs to the sectoral banking category.
It is necessary to invest at least Rs 1000 in this. There is no lock in period in this. If you redeem it before 15 days, then you will have to pay 0.25% exit load. The benchmark for this is NIFTY Bank TRI.
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Aditya Birla Sun Life Nifty India Defense Index Fund
Aditya Birla Sun Life AMC’s NFO Aditya Birla Sun Life Nifty India Defense Index Fund is being launched on 9 August 2024 and will close on 23 August 2024. This scheme belongs to the equity thematic category.
It is necessary to invest at least Rs 500 in this. There is no lock in period in this. If you redeem it before 30 days, then you will have to pay 0.05% exit load. The benchmark for this is Nifty India Defence TRI.
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Bank of India Business Cycle Fund
Bank of India Mutual Fund is launching its new fund offer Bank of India Business Cycle Fund on August 9. It will close on August 23. This scheme is of equity thematic category.
It is necessary to invest at least Rs 5000 in this. There is no lock in period in this. If you redeem it before 3 months, then you will have to pay 1% exit load. The benchmark for this is NIFTY 500 TRI.
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What is New Fund Offer?
Whenever an asset management company (AMC) launches a new fund, it is open for only a few days. Its purpose is to buy shares for the fund portfolio and hence money is raised through it. In a way, money is raised to start a new fund. This entire process is called a new fund offer.
According to the current rules, the duration of NFO in India is from 3 to 15 days. If the fund is open-ended, then investment starts in it a few days after that. If it is close-ended, then the investor can subscribe to it during the NFO period, but he has to keep it on hold during this period. However, it is worth noting that this fund is new, so it does not have any track record. The returns can be estimated only by looking at its benchmark.
