A New Fund Offering or NFO is a mutual fund scheme launched by an asset management company for the first time. Different from tax saving mutual funds, NFO offers benefits through an initial subscription at a low unit price thereby offering an opportunity for growth over a long period. Available as open-ended, with an unlimited subscription and withdrawal period, and close-ended, with a fixed lock-in period, asset management companies launch their NFOs according to the current market trends. Like last year, 2025 will surely witness an inflow of new fund offerings from different companies. Following is a list of some NFOs that investors must be aware of to make the right and on-time investment decision:
1. UTI Quant Fund:
Serving as an open-ended thematic-based fund, the UTI Quant Fund is an upcoming NFO with a subscription date of 2nd Jan 2025 to 16th Jan 2025. Helping investors to diversify their portfolios by opting for diversified investment across different sectors, the fund offers long-term growth and capital appreciation. Moreover, the fund managers aim to follow a quantitative IndusInd method for the selection of equity and equity-rated instruments. Investors flexibility to start the investment into the NFO from ₹1000.
2. Bandhan Nifty Alpha Low Volatility 30 Index Fund
Being an equity-based NFO, the Bandhan Nifty Alpha Low Volatility 30 Index Fund aims to replicate the actual Nifty Alpha Low Volatility 30 Index by investing in large and mid-cap equities. With an opening NAV of ₹10, the NFO plans to offer stable returns by investing in large volatile equities making it a perfect option for risk-averse investors. Investors can start their investment with ₹100 for SIP and ₹1000 for lump sum investment. The fund is available for subscription from 8th January to 20th January 2025.
3. Whiteoak Capital Quality Equity Fund:
Another NFO under the thematic category, the Whiteoak Capital Quality Equity Fund aims to make investments in thematic funds offering diversification and better returns to investors. Helping investors with the creation of a robust investment portfolio, the NFO plans to make investments in financially strong companies. Moreover, the fund is open-ended without any lock-in period delivering the flexibility to opt for SIPs starting from ₹500 and easy withdrawals. However, there is an exit charge of 1% if sold within 90 days of subscription.
4. ICICI Prudential Rural Opportunities Fund:
Opening on 9th January 2025, the ICICI Prudential Rural Opportunities Fund is an upcoming NFO that investors can select. Understanding the growth potential of companies under rural and allied themes like building infrastructure, FMCG, etc, the NFO can deliver exponential returns. It is a growth-based diversified fund that investors can select and invest in starting from ₹5000.
5. Mirae Asset Small Cap Fund:
Being an open-ended equity-based NFO, the Mirae Asset Small Cap Fund is focused on investment in small cap stocks for better growth and returns. Available for subscription from January 10, 2025, the NFO aims to strategically select and invest in financially sound companies. Investors can start their investment with a minimum amount of ₹ 5000 for lump sum and ₹99 for SIP investment plans. Closing on January 24th, the NFO can deliver significant returns making timely research and analysis essential.
Conclusion
New Fund Offering or NFO is available in different types with diverse investment objectives, unit prices, and subscription periods. Investors must therefore select the best NFO after thorough research and analysis of various underlying aspects like exit load, asset Management Company, and lock-in period.
