18 new mutual fund offers or NFOs currently open. Should you invest?

Many mutual fund investors consider investing in an NFO or New Fund Offer because it is coming from their favourite fund houses or it is managed by their dearest fund managers. Some investors also believe that NFOs are cheaper because they offer the units at Rs 10.

Mutual funds launch or offer new schemes to complete their bouquet of offerings or to offer an interesting theme or idea that may offer an opportunity to create wealth. These New Fund Offers or NFOs are a great draw among mutual fund investors.

However, just because your preferred fund house has launched a scheme doesn’t mean that you should invest in it. Sure, your beloved fund houses may be managing some great schemes. However, there is no guarantee that the new scheme will also be a great hit. The same logic applies to the argument about your dear fund managers.

Some investors also erroneously believe that schemes with NAVs of Rs 10 are better than schemes with higher NAVs. This belief was prevalent earlier. However, as awareness spread, this mistaken notion died its natural death. However, some new investors still fall for the sales pitch. An existing scheme with a long track record will have a higher NAV because it has already made investments and benefited from those investments. A new scheme, on the other hand, is still starting to invest. That’s why the NAV is Rs 10. It will collect money and then start investing.

So, should you invest in an NFO? It is always better to invest in schemes with a long performance record. This is because you have some historical data to base your investment decision. You don’t have any data when it comes to new offerings. Most mutual fund experts say you may consider investing in a new scheme if it offers something unique or new that is not available in the market.

Here are the New Fund Offers currently open for your perusal:

Scheme Name
NFO Open Date
NFO Close Date
ITI Flexi Cap Fund-Reg(G) Flexi Cap Fund 27-Jan-2023 10-Feb-2023
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund-Reg(G) Gilt Fund 27-Jan-2023 10-Feb-2023
HDFC NIFTY Midcap 150 ETF ETFs 30-Jan-2023 13-Feb-2023
HDFC NIFTY Smallcap 250 ETF ETFs 30-Jan-2023 13-Feb-2023
HDFC S&P BSE 500 ETF ETFs 30-Jan-2023 13-Feb-2023
Mirae Asset FMP-SR V-1-Reg(G) Fixed Maturity Plans 08-Feb-2023 13-Feb-2023
Aditya Birla SL CRISIL IBX SDL Jun 2032 Index Fund-Reg(G) Gilt Fund 06-Feb-2023 13-Feb-2023
SBI FMP-77-366D-Reg(G) Fixed Maturity Plans 06-Feb-2023 13-Feb-2023
Kotak Nifty SDL Jul 2033 Index Fund-Reg(G) Gilt Fund 03-Feb-2023 13-Feb-2023
Nippon India Nifty SDL Plus G-Sec – Jun 2029 Maturity 70:30 Index Fund-Reg(G) Gilt Fund 06-Feb-2023 14-Feb-2023
IDFC Crisil IBX Gilt April 2032 Index Fund-Reg(G) Gilt Fund 06-Feb-2023 14-Feb-2023
Mirae Asset Gold ETF ETFs 09-Feb-2023 15-Feb-2023
Axis Business Cycles Fund-Reg(G) Thematic Fund 02-Feb-2023 16-Feb-2023
PGIM India CRISIL IBX Gilt Index – Apr 2028 Fund-Reg(G) Gilt Fund 02-Feb-2023 16-Feb-2023
Mirae Asset Flexi Cap Fund-Reg(G) Flexi Cap Fund 03-Feb-2023 17-Feb-2023
Kotak Banking & Financial Services Fund-Reg(G) Sectoral Fund 06-Feb-2023 20-Feb-2023
Axis CRISIL IBX 50:50 Gilt Plus SDL Sep 2027 Index Fund-Reg(G) Gilt Fund 08-Feb-2023 21-Feb-2023
Bank of India Multi Cap Fund-Reg(G) Multi Cap Fund 10-Feb-2023 24-Feb-2023

Source: ACE MF, Data as on February 10 2023