Over the past few years, mutual funds are gaining popularity among investors looking to grow their wealth. Mutual Funds offer professional management of your investments, making them a convenient investment option for investors with minimum knowledge about the investing world.
As the calendar changes every year, a fresh wave of new mutual fund listings sets to grab investors’ attention. Let’s find out the list of mutual funds in India in 2023.
NFO refers to New Fund Offering.
When a new scheme is being launched by a mutual fund house to raise funds, the money is being raised by launching an NFO. It works like an IPO, where the Asset Management Company offers new funds on a subscription basis.
Big-name brands have initiated NFOs about various investment plans in portfolios. The release dates for most of them are listed below (as of August 2023).
It is essential to check the background of the Asset Management Company because the AMC's performance can influence the NFO's performance.
Like an IPO, investing in NFO can be risky sometimes. In the case of NFO, you cannot check the performance and history of the fund. Therefore, predicting how the fund managers will utilise the funds is challenging.
The expense ratio is the annual fee charged by the fund to cover operating expenses. A higher expense ratio can impact the return in the long term.
Before investing, you should cheCk the returns of similar funds of different fund houses to know about the performance of the NFO.
Close-ended funds come with a lock-in period of 3-5 years, and you should check before investing if the NFO has a lock-in period to avoid any issues later on.
Investing in NFO allows you to be a part of a fund from the start and grow your investment with it. However, it is crucial to evaluate the objectives and risks of the NFO to make informed decisions.
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There is no best NFO to pinpoint, depending on your financial goals and risk appetite. Experts often advise you to research well before investing in an NFO.
NFOs' risk may vary depending on the underlying assets and investment strategy. Hence, it is essential to research well before investing.