Can I invest in New Fund Offers (NFO)

What is a NFO?

A New Fund offer (NFO) is the first subscription offering for any new fund offered by an investment company. A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. A mutual fund NFO or New Fund Offer is when a new mutual fund is launched and is offered to the public before it opens up to daily transactions. The NFO is offered at a fixed price. After the NFO period, investors invest in these funds only at the prevailing Net Asset Value (NAV). 

Whats the difference between NFO and IPO?

A new fund offer is similar to an initial public offering. Both represent attempts to raise capital. However investors often make the mistake of looking at an NFO like they'd look at an IPO. But the difference between the two is that the price of a stock is based on the supply and demand of it, whereas mutual fund units have an endless supply. The demand of a fund has no impact on its NAV. Hence you cannot expect listing gains in NFO like you may expect in IPO.

What is the benefit of investing in NFO's ?


Investing in an NFO seems cheaper as the fund is offered at a starting NAV of Rs. 10 in most cases. You may want to invest in an NFO if your portfolio diversification requires you to invest in certain stocks / sectors that only this NFO is offering. You may also chose to invest in NFO for close ended schemes as they are not open to subscription after the NFO period. 

Can I invest in NFO through my Account with Navia?

Yes, you can invest in any NFO through your account with Navia if you hold a Demat Account with us. 

How can I invest in NFO through Navia?

The investor should logon to their Navia or Rocket Plus and navigate to MF. Check for NFO just like how you search for an existing fund. Once the NFO is selected, you can click on BUY option to buy the NFO.

Alternatively you can raise a ticket from here to invest.

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