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.

What Is an NFO?

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.

Mutual Fund Listings in 2023

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). 

A Detailed Look at Mutual Fund Listings of 2023

1. Axis Business Cycles Fund(G)-Direct Plan

• Objective: Long term capital appreciation
• Strategy: Predominantly invest in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy
• No assurance that the investment objective of the Scheme will be achieved

2. ICICI Pru Innovation Fund(G)-Direct Plan

• Type: Open-ended thematic fund
• Objective: Generate long-term capital appreciation
• Strategy: Primarily invest in equity and equity-related securities of companies, as well as units of global mutual funds/ETFs that can benefit from innovation strategies and themes
• Risk: No assurance or guarantee that the Scheme will achieve its investment objective

3. HDFC Defence Fund(G)-Direct Plan

• Investment in equity and equity related securities of Defence & allied sector companies
• Long-term capital appreciation
• No guarantee that investment objective will be achieved

4. Quant BFSI Fund(G)-Direct Plan

• Investment objective is to generate consistent returns by investing in equity and equity related banking and financial services instruments.
• There is no assurance that the investment objective of the Scheme will be achieved.

5. Samco Active Momentum Fund(G)-Direct Plan

• Investment objective is to generate long-term capital appreciation
• Invests in stocks showing strong momentum
• Momentum stocks exhibit positive price momentum
• Based on the phenomenon that winners continue to perform well in the future and losers continue to perform poorly
• No assurance or guarantee that investment objective will be achieved

Things to Consider Before Investing in NFO

1. The Reputation of the AMC

‍It is essential to check the background of the Asset Management Company because the AMC's performance can influence the NFO's performance.

2. Risk

‍ 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.

3. Expense Ratio

‍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.

4. Returns of Similar Funds

‍Before investing, you should cheCk the returns of similar funds of different fund houses to know about the performance of the NFO.

5. Lock-in period

‍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.

Conclusion

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.

Invest with Confidence on Fi

Just so you know, Mutual Fund investments on Fi are commission-free. With its intuitive user interface, suited for novice & seasoned investors, you can select from over 900 direct Mutual Funds. Plus, Fi's 100% secure as it functions under the guidance of epiFi Wealth, a SEBI-registered investment advisor. To help simplify the steps involved, you can invest daily, weekly, or monthly via automatic payments or SIPs — created with one screen tap. Moreover, Fi offers 100% flexibility with zero penalties for missed payments.

Frequently Asked Questions

1. What is the best NFO to invest in 2023?

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.

2. How risky is an NFO?

NFOs' risk may vary depending on the underlying assets and investment strategy. Hence, it is essential to research well before investing.