New Fund Offers (NFO)

• Subscription Phase:

  The fund opens for initial investment for a limited period. During this window, you can allocate part of your ULIP premium to the new fund.

• Unit Allocation:

  Your funds are converted into units, usually priced at ₹10 each during the NFO. The number of units you get depends on how much premium you allocate.

• Fund Activation:

  After the subscription closes, the fund manager starts investing according to the fund’s strategy and objectives.

• NAV Calculation:

  Once the fund goes live, its NAV is updated regularly based on market movements. Your investment value rises or falls with the NAV.

• Ongoing Management:

  The fund is actively monitored and adjusted over time. You can track performance through statements and decide whether to continue or switch to future premiums.

Overall, the process is transparent and helps you decide whether the new fund fits your long-term financial plan.

• Open-ended NFO:

  These funds remain available for buying and selling even after the NFO period closes, and they do not come with a fixed maturity date. Their NAV updates regularly based on market movements, providing flexibility and general liquidity access. They are typically chosen by investors seeking long-term participation. Because they stay open, you may adjust your investment over time depending on personal financial preferences.

• Close-ended NFO:

  Close-ended funds operate for a set duration, generally between three and five years. Investments can be made only during the NFO window, but units might be traded on stock exchanges once the period ends. They often attract investors who prefer a fixed investment horizon. The closed structure helps maintain a steady fund size, which may support more consistent portfolio execution by the manager.

• Interval Fund NFOs:

  Interval funds combine features of both open-ended and close-ended formats, allowing purchases and redemptions during specific intervals. These provide occasional liquidity without continuous trading access. They are considered by investors looking for medium-term exposure with limited liquidity points. This format offers a balance between maintaining stability and meeting periodic withdrawal needs.

• Exchange-Traded Fund (ETF) NFOs:

  ETF NFOs follow specific indices, sectors, or commodities and are traded on stock exchanges like regular shares. They offer real-time market pricing and usually involve relatively lower operating costs. These funds are generally selected by individuals who prefer a passive investment style. Daily disclosure of holdings provides clarity on how the fund’s portfolio is structured.

• Thematic or Sector-Based NFOs:

  A thematic or sector-focused NFO focuses on a specific theme or industry, such as technology, healthcare, energy, or infrastructure. The portfolio largely consists of companies operating within that segment, aiming to align with developments in that area. These funds carry varied return potential depending on how the theme evolves. They are typically considered by investors who have a specific outlook on a sector and are comfortable with associated fluctuations.

• Index-Based NFOs:

  Index-based NFOs aim to reflect the performance of a selected market index by holding similar stocks in comparable proportions. As these funds replicate the index, their movements usually correspond with broader market trends. They provide a straightforward and cost-efficient way to gain market-linked exposure. This passive structure can help reduce the influence of individual stock selection and offer benchmark-aligned behaviour.

• Asset Allocation–Based NFOs:

  Asset allocation NFOs spread investments across different asset classes such as equity, debt, and money market instruments. The mix may stay constant or shift based on preset guidelines and market conditions. These funds work toward maintaining balance between stability and exposure to growth areas. They are suitable for investors who prefer a diversified framework that adjusts according to market changes.

• Fund objective

  Understanding the fund’s goal is important to know how it plans to generate returns and in which sectors it will invest.

• Asset allocation

  The asset mix between equity, debt, and cash shows the level of risk and growth potential the fund holds.

• Risk profile

  Every NFO has a different level of market risk. Check if the fund’s risk aligns with your personal risk tolerance.

• Fund manager's experience

  The skills and track record of the fund manager influence how well the fund is managed under different market conditions.

• Benchmark and strategy

  Check which index or benchmark the fund follows and what investment strategy is used to meet its objective.

• Exit load and charges

  Review if there are any charges for early withdrawal, fund management charges, or other policy-related costs.

• Lock-in period

  Some NFOs may come with a lock-in period. It is important to check this before investing.

• Step 1: Through a financial advisor

  You can invest by connecting with a financial advisor or broker. They help you choose an NFO that fits your risk profile and financial goals, while also taking care of the paperwork and formalities. This option works well if you prefer personal guidance while making investment decisions.

• Step 2: Via online investment accounts

  Many people prefer using their bank’s investment portal or mutual fund apps to invest in NFOs. These platforms make it easy to complete transactions, track your portfolio, and access useful tools like comparisons and research insights. It’s a convenient choice for anyone who likes a quick, digital, and paperless process.

• Step 3: Through third-party websites

  Various financial websites and fintech platforms list NFOs from multiple asset management companies. They provide all the key details in one place: fund information, features, and basic analysis. This makes it easier to review several options side by side and pick one that matches your investment plan.