Upcoming NFOs: Opening From March 17, 2025

New Fund Offers (NFOs) present investors with opportunities to invest in mutual funds at their inception, often at an initial price before the Net Asset Value (NAV) is established. As of March 2025, several NFOs are available across various categories, including equity and debt funds. Here’s an overview of some notable upcoming NFOs:

TATA BSE Quality Index Fund Direct Plan IDCW Reinvestment – NFO

• Open Date: March 17, 2025
• Close Date: March 28, 2025
• NAV: ₹10
• AMC: Tata Mutual Fund

SBI BSE PSU Bank Index Fund Direct Plan Growth – NFO

• Open Date: March 17, 2025
• Close Date: March 20, 2025
• NAV: ₹10
• AMC: SBIMutual Fund

What is an NFO (New Fund Offer)?

A New Fund Offer (NFO) is the initial offering of units of a mutual fund to the public. It is similar to an Initial Public Offering (IPO) in the stock market, where an asset management company (AMC) introduces a new mutual fund scheme to raise money from investors.

The units in the fund are offered at a fixed price, typically ₹10, and are available for subscription for a limited period. After the NFO period ends, the fund’s Net Asset Value (NAV) starts getting calculated based on the market value of the securities in the portfolio.

Factors to Consider Before Investing in an NFO

Investing in an NFO can be attractive, but it’s essential to carefully evaluate several factors before committing your money. Here are key factors to consider:

• Investment Objective: Every mutual fund has a specific objective, such as capital appreciation, income generation, or a combination of both. Make sure that the fund’s objective aligns with your financial goals.
• Fund Category: Is it equity, debt, or hybrid? Mutual funds can be broadly categorized into equity funds, debt funds, hybrid funds, and more. Each category carries different levels of risk and return potential.
• Fund Manager’s Experience: Who is managing the fund? The experience and track record of the fund manager are crucial. A seasoned fund manager with a good track record of managing funds can significantly affect the fund’s performance.
• Past Performance of Similar Funds: What’s the track record of similar funds? While past performance is not indicative of future returns, it can give you an idea of how the AMC has performed in the past.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.