Frequent question: What is difference between IPO and NFO?

Is NFO better than IPO?

In case of NFOs, the level of the market is more important as it will determine at what valuations the fund will enter the markets. IPO price is indicative of perceived value of the company since a quality IPO commands a better valuation and therefore a better price in the market.

Is it good to invest in NFO?

Why NFO is a good opportunity? With the help of an NFO, the fund house raises money from the public to purchase securities such as equity shares, bonds, and so on, in the market. NFO is cheaper than the existing funds as it is new to the market.

Why you should not invest in NFO?

Many investors prefer an NFO over existing funds as a new fund is available at the price of ₹10, which is its net asset value (NAV). … “Investing in an NFO simply because it could earn a higher return could prove counterproductive to an investor’s portfolio,” Krishnan added.

What is an NFO?

Definition: A new fund offer (NFO) is the first time subscription offer for a new scheme launched by the asset management companies (AMCs). A new fund offer is launched in the market to raise capital from the public in order to buy securities like shares, govt. bonds etc. from the market.

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When can I sell my NFO?

This time period is typically 3-4 years from the launch date. However, the investors may buy and sell the units of such a fund on the stock market in theory, but the liquidity of such funds on the market tends to be low.

What is NFO price?

In India, the NFO price in mutual funds is generally fixed at Rs. 10 per unit of the mutual fund scheme. Once the NFO period expires, existing or new investors can only purchase units of the scheme at a specified price, which is generally higher than the NFO price.

Can we do SIP in NFO?

We have recently enabled SIP investment in NFOs (New Fund Offers). SIP would be available in most open-ended NFOs schemes if offered by the AMC and exchange.

Which is the best NFO to invest now?

Mutual Fund New Fund Listings

Scheme Fund Class Returns(%)
Axis DEF – DP (G) Dynamic Asset Allocation or Balanced Advantage 53.20
Axis Corporate Debt Fund – RP (G) Corporate Bond Fund 35.37
Axis Corporate Debt Fund – DP (G) Corporate Bond Fund 39.93
ICICI Prudential Nifty Low Vol 30 ETF Index Funds/ETFs 1289.32

Does NFO have listing gains?

After the expiry of the tenure, the investors can purchase the units the offer. However, it is said that the subscribers of NFO have achieved major gains after listing. Once the period of NFO is finished, investors will get their funds at the commanding Net Asset Value (NAV) of the fund.