Check out new fund offers of companies; build up your investment portfolio

New fund offer (NFO) is a popular investment option. Companies launch NFOs to introduce new mutual fund schemes, aiming to raise capital from investors and then purchase securities like stocks or debt instruments. NFOs provide investors with the opportunity to invest in a fund from its inception, offering benefits such as low initial investment, unique investment themes, and potential for future growth.

Some notable new fund launches are:

Aditya Birla Sun Life Crisil IBX Gilt June 2027 Index Fund

This fund focuses on government securities (G-secs) with a target maturity date in June 2027. The scheme’s investment objective is to generate returns corresponding to the total returns of the securities as represented by the CRISIL IBX Gilt Index. The NFO is open for subscription until June 4, 2024, with a minimum investment of Rs 1000.

Bajaj Finserv Multi Asset Allocation Fund

It aims to generate income from fixed instruments and secure capital appreciation by investing in equity and equity-related securities including derivatives, gold and silver exchange traded funds, exchange traded commodity derivatives, and in units of real estate investment trust, and infrastructure investment trust.

The NFO is open for subscription until May 27, 2024, with a minimum investment of Rs 500. There is no entry load and there will be no exit load after a year.

Bajaj Finserv Nifty 1D Rate Liquid ETF

The scheme’s investment objective is to provide income with low risk and a high level of liquidity through a portfolio of Tri-Party Repo ( A tri-party repo is a type of repurchase agreement where a third party acts as an intermediary between the borrower and lender) on g-secs / repo & reverse repo.

The NFO is open for subscription until May 27, 2024, with a minimum investment of Rs 5000. There is no entry load and there will be no exit load after a year.

DSP Nifty Bank Index Fund

It is an open-ended scheme tracking the Nifty Bank Index. It offers investors an opportunity to get exposure to the 12 most liquid and large Indian banking stocks through a single fund. Nifty Bank Index is diversified with a composition of private and public sector banks.  The New Fund Offer for DSP Nifty Bank Index Fund is open for subscription from May 15, 2024, and will close on May 27, 2024.

Kotak NIFTY 100 Low Volatility 30 Index Fund

It tracks the Nifty 100 Low Volatility 30 Index. The index comprises low-volatility stocks in the Nifty 100 universe. The new fund offering will remain open for subscription till May 31 2024.

Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF Fund of Fund

It is an open-ended fund investing in units of Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF.  This scheme is open for subscription and will close on May 24. It will open for continuous sale and repurchase from May 31.

SBI Automotive Opportunities Fund

The SBI automotive opportunities fund is an open-ended equity scheme that seeks to generate long-term capital appreciation for investors. Its objective is to provide investors with exposure to companies engaged in automotive and allied business activities, aiming for long-term growth and capital appreciation. The NFO is open for subscription until May 31, 2024, with a minimum investment of Rs 5,000.

WhiteOak Capital Special Opportunities Fund

The fund investment objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, including mergers and acquisitions; government policy and regulatory changes; technology-led disruption and innovation; new trends; new and emerging sectors; companies and sectors going through temporary unique challenges; and other similar instances. The NFO opened on May 15 and closed on May 29.

How to invest in an NFO?

Through a broker

One can always reach out to a broker and they can help you invest in a new fund offer. Always make sure that the broker you are consulting is an authorised one. 

Through online trading account

This is another method of investing and is convenient too. The purchasing and selling of the NFO units can be done online. The online trading account can also be used to track the Net Asset Value(NAV) of the investments made.