Latest NFO Mutual Funds In March 2023

Latest NFO Mutual Funds In March 2023

Mutual funds are a popular investment option for retail investors who want to use industry best practices in finance and generate higher returns than those offered by savings or fixed deposits with minimal effort.

Mutual fund houses often launch new mutual fund schemes, New Fund Offerings (NFO)  with their own set portfolio and market view.

In this guide, we will explain what NFO mutual funds are and list some of the new upcoming NFOs in mutual funds that will open for subscription in March 2023.

What is an NFO?

An NFO is a new scheme launched by a mutual fund house to raise funds to buy securities. 

The money raised from investors during the offer period of an NFO is used to buy investment securities from the market. Like an IPO, an NFO is a new offer made by the Asset Management Company on a subscription basis. 

NFOs are often designed to cater to a specific group of investors interested in a particular type of portfolio that the fund is offering. 

Upcoming NFOs in mutual funds are not as much in the news as IPOs are.

Types of NFOs

Mutual funds can be classified into two types based on the level of flexibility for investors: open-ended funds and close-ended funds.

Open-ended funds

An open-ended mutual fund announces buying new shares on a specific date. The units can be purchased for open-ended mutual funds during or after a new fund offering. 

Usually, the number of units is not restricted for open-ended funds, and investors can buy or sell (redeem) them through brokerage firms. 

The fund house releases daily reports on the fund's Net Asset Value.

Close-ended funds

Units of a closed-ended fund can be bought only during its launch and redeemed only when its tenure of investment is over. 

These funds have a fixed maturity date and are often listed on stock exchanges for trading. 

The number of units issued is limited, and the units can only be traded on the stock exchange during the specified trading hours.

Upcoming NFO mutual funds in March 2023:

The names of the NFO mutual funds in March 2023 are given below.

Benefits of Investing in NFOs

Investing in NFOs offers numerous advantages, such as:

• Investment in New Strategies: Close-ended funds provide access to new and innovative investment strategies that may not be available through existing open-ended funds.
• Great Flexibility: Close-ended funds allow for flexibility in timing your investment. Even during a market peak or bad investment timing, the fund manager can hold a portion of your funds to invest later.
• No Large Flows: Unlike open-ended funds, investors in close-ended funds are locked in for the tenure of the fund. This allows the fund manager to focus on proper stock selection and tracking. Investment in close-ended funds can only be made through NFO.
• Lock-in Support: The 3-4 years lock-in period provided by close-ended funds helps prevent investors from engaging in lousy investing behaviour. Investors who stay in the market longer can avoid impairing their returns.

On a Close note 

A thorough understanding of NFOs and their potential benefits can lead to promising investment opportunities. 

By conducting proper research and being aware of the activation date of an NFO, investors can capitalise on good investment schemes and potentially increase their wealth.

It is recommended to carefully read and understand the terms and conditions of the investment product before making a final decision.

FAQs

1) Which is the best NFO to invest in 2023?
Ans - The Kotak Nifty 200 Momentum 30 Index Fund - Direct (G) was launched on May 25, 2023. The ITI Focused Equity Fund - Direct (G) was launched on May 29, 2023. The NJ ELSS Tax Saver Scheme - Direct (G) was launched on March 13, 2023. The UTI-Nifty50 Equal Weight Index Fund - Direct (G) was launched on May 22, 2023. The UTI-S&P BSE Housing Index Fund - Direct (G) was also launched on May 22, 2023.

2) Which mutual fund is best for 2023?
Ans - The Kotak Equity Opportunities Direct Growth fund has an asset under management (AUM) of ₹12,514 crores with an expense ratio of 0.5%. The Motilal Oswal Large and Midcap Fund Direct Growth has an AUM of ₹1,543 crores and an expense ratio of 0.68%. The ICICI Prudential Large & Mid Cap Fund Direct Plan Growth has an AUM of ₹7,364 crores with an expense ratio of 1.07%.

3) What is the new NFO April 2023?
Ans - HDFC AMC has announced the opening of a new fund offer (NFO) on April 6, 2023, which will remain open until April 18, 2023. In their press release, HDFC AMC stated that the NFO will feature open-ended schemes that aim to replicate the performance of the S&P BSE 500, NIFTY Midcap 150 Index, and NIFTY Smallcap 250 Index, respectively.