{"id":1760,"date":"2024-06-07T12:57:32","date_gmt":"2024-06-07T07:27:32","guid":{"rendered":"https:\/\/gift-nifty.info\/?p=1760"},"modified":"2024-06-07T12:57:32","modified_gmt":"2024-06-07T07:27:32","slug":"understanding-nfo-in-mutual-fund-a-step-by-step-guide","status":"publish","type":"post","link":"https:\/\/gift-nifty.info\/2024\/06\/07\/understanding-nfo-in-mutual-fund-a-step-by-step-guide\/","title":{"rendered":"Understanding NFO in Mutual Fund: A Step-by-Step Guide!"},"content":{"rendered":"\n

Hi there! Welcome to Gift-Nifty<\/a>, where you can explore what is NFO in a Mutual Fund.<\/strong> It is important to know about New Fund Offering (NFO) if you own mutual funds or want to buy them.<\/p>\n\n\n\n

If you want to buy stocks, you can do an Initial Public Offering (IPO). If you want to buy mutual funds, you can do an NFO.<\/p>\n\n\n\n

You can put money into a mutual fund plan when it first starts up with NFO. We will talk in-depth about NFO in mutual funds in this post.<\/p>\n\n\n\n

NFO in Mutual Funds<\/strong><\/h2>\n\n\n\n

A new fund offer is what NFO stands for in this case. It is the start of a new joint fund plan.<\/p>\n\n\n\n

When an Asset Management Company or fund house releases a new mutual fund scheme, it uses NFO to let anyone buy units in that scheme.<\/p>\n\n\n

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\"NFO<\/figure><\/div>\n\n\n

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In the NFO, information about the plan, the types of securities to be bought, the fund manager, and other things are given.<\/p>\n\n\n\n

Mutual units in this sale can usually be bought for \u20b910 each. When the NFO goes live, it is sold on the market based on the NAV.<\/p>\n\n\n\n

Types of Mutual Fund NFOs<\/strong><\/h2>\n\n\n\n

Three types of Mutual fund NFOs are as under:<\/p>\n\n\n\n

Open Ended Funds<\/strong><\/h3>\n\n\n\n

With an open-ended mutual fund, you can join or leave the plan at any time.<\/p>\n\n\n\n

You can give money to the plan at any time and get your money back at any time.<\/p>\n\n\n\n

The open-ended funds have a lot of cash on hand. Even after the NFO time is over, you can still buy units in the funds at their current NAV.<\/p>\n\n\n\n

Close Ended Funds<\/strong><\/h3>\n\n\n\n

Closed-end funds are only good for a certain amount of time. During the NFO term is the only time you can put money into close-ended funds.<\/p>\n\n\n\n

After the NFO time is over, there is no longer any way to invest in the scheme. After the scheme goes public on the stock market, you can get your money back.<\/p>\n\n\n\n

Interval Funds<\/strong><\/h3>\n\n\n\n

One kind of closed-end fund is an interval fund. But in this case, buyers can put money in and cash out units at regular times.<\/p>\n\n\n\n

This time period, which can happen once a year or every six months, lets buyers trade funds.<\/p>\n\n\n

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\"Interval<\/figure><\/div>\n\n\n

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NFO Process in Mutual Funds<\/strong><\/h2>\n\n\n\n

Now that you know what NFO is, let’s look at how it works in mutual funds:<\/p>\n\n\n\n