Easy Way to Buy Affordable Mutual Fund: The way a company comes into the stock market, it brings its IPO. Similarly, when a new mutual fund offer comes, it is called NFO, i.e. New Fund Offer. The way IPOs are coming into the market rapidly, in the same way, all the companies are bringing new mutual funds. We are telling you how the new fund offer can help you earn more in such a situation.
New fund offers just like IPO.
The formula for a new fund offer is simple. Through IPO, the company gets listed in the stock market. Now when the IPO comes, the starting price per share is fixed in it. At this price, you have to buy IPO. After this, it is listed in the IPO market on a specific date. After that, if it is listed above its starting price, then it is your profit. You must have also seen that many times the money gets doubled after the IPO is opened.
Talking about 2021 only, ten such IPOs came, which made investors rich. This is how the offer of new mutual funds happens. New mutual funds are cheap. That is, in the beginning, you can invest in them even from 5 thousand rupees. Like IPOs, these also have an opening and closing date of the fund. According to this date, you have to invest.
According to the customers, there are NFO (New Fund Offer)
Different types of people invest in the stock market. Some are high risk; some are low risk. Some prefer to invest in extensive stocks, while many in small stocks. Some investors are from the international market, while some invest in bonds. Overall, if you invest in new fund offers, your net asset value is better, which can benefit you in the future.
Unit at the rate of Rs 10 during NFO
Fund houses offer an opportunity to buy units of the scheme at the rate of Rs 10 during the NFO period. Once the NFO is closed, the investor has to invest in that scheme at his Net Asset Value (NAV) rate. That is, you can put money every month like SIP. After NFO, the NAV of the scheme may increase or decrease. The rise or fall in NAV depends on the stock market.