Can we Start SIP In NFO | FAQs New Offer Fund

NFO means New Fund Offer. As you can tell from the name itself, this is a new fund that has been created and it is being offered to the people. All those people who invest money in mutual funds should know that all the mutual funds will be launched among the people for the first time one day or the other and after that, the further process will be going on. The day they are launched in the market for the first time is called a new fund offer.

According to me, some people look at NFOs like IPOs but it is not so, the truth is completely different. NFO is completely different from IPO. People think that if the demand for funds increases then they will benefit from it but this does not happen at all in NFO. Here, if the demand for funds increases, the user does not get any benefit, then from this, you must have understood what benefits it can have.

If you also want to invest your money in the new fund offer, then for this you will have to follow some methods. Through which you will be able to invest your money, the first way is that you can invest money through a broker. As you know, the role of a broker is that of an authorized mediator who acts as a mediator between the company and the public. The broker will complete the process of your application form and will also explain to you the entire process of investing in NFO. You can also invest in NFO through an online trading account.

Its biggest advantage is that you can start investing at a very low price and with this, you can invest at low risk. Because the risk is very less here. Its units are usually offered at a fixed price, such as ₹10 per unit.

If you want to invest with minimum risk then you can choose the new fund offer. But if you are not afraid of risk and want high returns and are ready to take the risk, then you can choose IPO. There is more risk in an IPO whereas there is less to moderate risk in a New Fund Offer, so now you can choose as per your choice.

If you want to invest money in IPO then it is necessary for you to have a demat account. If you have a demat account then you can apply to any company in which you want to invest money.

Opening a demat account is very easy, you can open a demat account anywhere as per your choice. As you know there are many demat account providers like Angel One, Grow, Upstock, HDFC Securities, ICI Direct, Access Direct, and many other brokers that will open your demat account.

If you want to invest money in an IPO, then you can invest only 1200 shares in an IPO whose price is up to Rs 1,22,400. But if your net worth is more then you can get Rs 2,44,800. You can buy up to 2400 shares.

Before investing, it is very important for you to understand that NFOs and SIP are different. Although both are types of mutual funds, NFO means lump sum, while SIP means Systemic Investment Plan, which means it runs monthly. Whereas in NFO you invest money once.

If you are investing in any fund then you must check the expense ratio before investing. Because many new investors feel that if the return of a fund is 20 to 25 percent then they will also get the same profit but this does not happen in reality because the expense ratio comes in between.

If you want to invest money in an NFO then it becomes very important for you to choose the right NFO, how can you know the right NFO, for this, you have to start by knowing the investment of a mutual fund scheme. All NFOs clearly state in their scheme information document the returns they aim to achieve.

I can say with an estimate that you get approximately a 12% return in SIP. High returns in SIP also depend on how long your investment is. If you invest for a longer period, your returns will also be good. In the short term, you get less returns.

NFO Full Is National Fund Offer