Understanding New Fund Offering

An NFO period usually lasts between 15 to 30 days, during which investors can subscribe to the new fund. Here’s how it works:

The NFO Process :

  • Announcement : The AMC announces the launch of a new fund with specific investment objectives
  • Collection Period : Investors can buy units at ₹10 per unit during this fixed period
  • Minimum Collection : The fund must collect a minimum amount (usually ₹20 crores) to launch successfully
  • Allotment : Units are allocated to investors based on their investment amount
  • Fund Launch : After the NFO closes, the fund manager starts investing the collected money according to the scheme’s strategy

Key Features :

  • Fixed price of ₹10 per unit for all investors
  • Limited time window for investment
  • First-come, first-served basis (unless oversubscribed)
  • Professional fund management from day one

Types of New Fund Offers

NFOs can be categorized in several ways based on different criteria:

  • Open-Ended NFOs : After the NFO period ends, investors can buy or sell units anytime at the current Net Asset Value (NAV). Most mutual funds fall into this category.
  • Close-Ended NFOs : These funds have a fixed maturity period (usually 3-5 years). You can only enter during the NFO period and exit when the fund matures, though some may be listed on stock exchanges for trading.
  • Interval NFOs : These funds allow investors to buy or sell units only during specific intervals (like every quarter or half-year), combining features of both open and close-ended funds.

How NFO is a Good Opportunity?

Early Bird Advantage

  • Lower entry cost : All investors start at the same ₹10 price point
  • No premium pricing : Unlike established funds where NAV might be ₹50 or ₹100

Fresh Investment Strategy

  • New themes like ESG (Environmental, Social, Governance) funds
  • Sector-specific opportunities (like AI/technology funds)
  • Geographic diversification (emerging market funds)

Example : When Mirae Asset launched their Emerging Bluechip Fund NFO in 2017 at ₹10, early investors benefited significantly as the NAV grew to over ₹50 by 2021.

How to Invest in an NFO?

Step-by-Step Process:

1. Research and Choose

  • Visit AMC websites or use investment apps
  • Read the fund’s offer document (like reading a restaurant menu)

2. Complete KYC

  • Submit PAN card, Aadhaar, bank details
  • This is like creating an account before ordering online

3. Fill Application Form

  • Specify investment amount (minimum usually ₹500-₹1,000)
  • Choose investment mode: lump sum or SIP

4. Make Payment

  • Online banking, UPI, or cheque
  • Money gets deducted during the NFO period

5. Receive Confirmation

  • Units allocated after NFO closure
  • Portfolio reflects in your investment account

Things to Keep in Mind Before Investing in NFO Funds

Fund House & Manager:

Research the AMC's track record and the fund manager's experience with similar funds.

Investment Strategy:

Understand the fund's objectives and ensure they align with your financial goals and risk tolerance.

Market Timing:

Consider current market conditions - equity fund launches during market peaks or debt funds during rising rates need extra caution.

Costs & Terms:

Compare expense ratios with existing funds and check for any exit loads or lock-in periods.

Portfolio Fit:

Evaluate how the NFO complements your existing investments and whether it offers meaningful diversification.

Benefits of Investing in an NFO

Cost Benefits:

Lower initial expense ratios and no entry loads compared to existing funds.

Fresh Opportunities:

Access to innovative strategies and new market segments not available in existing funds.

Equal Entry:

All investors start at ₹10 per unit, creating a level playing field.

Professional Management:

Experienced fund managers with clear investment strategies from day one.

Tax Advantages:

Some NFOs (like ELSS funds) offer tax deductions under Section 80C.

SIP Options:

Most NFOs allow systematic investment plans from launch, enabling regular investing.

Closing Note


NFOs offer exciting opportunities to access innovative investment strategies, but they come with risks like any investment. Success depends on thorough research rather than marketing hype or FOMO (fear of missing out).

Remember, being new doesn’t guarantee success – many top-performing funds are decades old. Evaluate NFOs with the same rigor as any investment decision. Consider consulting a financial advisor to ensure the NFO aligns with your goals and risk profile.

Most importantly, never invest more than you can afford to lose, and keep NFOs as just one part of your diversified portfolio. With disciplined research and realistic expectations, NFOs can be valuable additions to your wealth-building strategy.

FAQs

What is the minimum investment required for the Rising India basket?

The minimum investment for the Rising India basket is ₹15,000. This threshold allows investors to access a well-researched, diversified portfolio focused on India’s long-term growth story.

Over the past 3 years, the Rising India basket has delivered an absolute return of 17.69%. Please note that mutual fund investments are subject to market risks, and past performance is not indicative of future returns.

Rising India focuses on sectors that are central to India’s economic growth—infrastructure, manufacturing, financial services, and technology—making it a future-forward investment choice.

This basket is ideal for investors with a moderate to high risk appetite, looking to benefit from India’s structural economic shifts such as urbanisation, digitalisation, and consumption growth. It’s best suited for a long-term investment horizon.

The portfolio blends large-cap stability and mid-/small-cap growth potential. It includes:

Yes, the Rising India basket is curated with disciplined research and active monitoring to ensure the portfolio stays aligned with India’s evolving growth story and macroeconomic trends.

How Large Cap Mutual Funds Work

Large Cap Mutual Funds are investment vehicles that pool money from multiple investors to invest primarily in India’s top 100 companies by market capitalization, including established giants like Reliance, Britannia, ITC, and HUL. As per SEBI regulations, these funds must allocate at least 80% of their assets to these blue-chip companies, which are known for their strong market reputation and proven business models. Professional fund managers research and select the best large-cap stocks to create a diversified portfolio, with the fund’s value (NAV) calculated daily based on underlying stock performance.


The key advantage of Large Cap funds lies in their stability and lower volatility compared to mid-cap and small-cap funds. Since these companies are market leaders with established operations and steady cash flows, they tend to weather economic downturns better and provide consistent returns over medium to long-term horizons. This makes Large Cap funds ideal for conservative investors, first-time investors, or anyone seeking steady wealth creation with reduced risk, as they offer the perfect balance of growth potential and stability through exposure to India’s most reliable corporate performers.

Benefits of Large Cap Funds

1. Stability & Lower Risk

Invest in established companies with proven business models, offering more stability and lower volatility compared to mid and small-cap funds.

2. Consistent Performance

Large cap companies typically provide steady returns over the long term, making them suitable for conservative investors.

3. Liquidity

High liquidity as these companies are actively traded on stock exchanges, ensuring easy entry and exit.

4. Professional Management

Expert fund managers actively manage your portfolio, making informed investment decisions based on market research.

Who Should Invest in Large Cap Funds?

Conservative Investors

Ideal for those seeking stable returns with lower risk compared to mid and small-cap funds

First-time Investors

Perfect starting point for new investors due to their stability and lower volatility.

Long-term Wealth Creation

Suitable for investors with investment horizon of 5+ years for optimal returns.

Risk-Averse Investors

Those who prefer steady growth over aggressive returns will find these funds suitable.

Investment Options & Features

1. SIP (Systematic Investment Plan)

Start with as low as ₹500 per month through SIP and benefit from rupee cost averaging and compounding.

2. Lump Sum Investment

Make one-time investments based on market conditions and your financial goals.

3. Tax Benefits

Long-term capital gains up to ₹1 lakh are tax-free. LTCG above ₹1 lakh taxed at 10%.

4. Flexibility

Switch between funds, increase/decrease SIP amounts, and redeem partially or fully as needed.

How to Invest in Large Cap Funds

Simple 3-Step Process:

STEP 1 : Choose Your Fund
Select from our top-rated large cap funds based on your risk profile and goals.

STEP 2 : Complete KYC
Complete your KYC online with Aadhaar and PAN. It’s quick and paperless.

STEP 3 : Start Investing
Begin your investment journey with SIP or lump sum and track your portfolio online.

FAQs

What is the minimum investment required for the Rising India basket?

The minimum investment for the Rising India basket is ₹15,000. This threshold allows investors to access a well-researched, diversified portfolio focused on India’s long-term growth story.

Over the past 3 years, the Rising India basket has delivered an absolute return of 17.69%. Please note that mutual fund investments are subject to market risks, and past performance is not indicative of future returns.

Rising India focuses on sectors that are central to India’s economic growth—infrastructure, manufacturing, financial services, and technology—making it a future-forward investment choice.

This basket is ideal for investors with a moderate to high risk appetite, looking to benefit from India’s structural economic shifts such as urbanisation, digitalisation, and consumption growth. It’s best suited for a long-term investment horizon.

The portfolio blends large-cap stability and mid-/small-cap growth potential. It includes:

Yes, the Rising India basket is curated with disciplined research and active monitoring to ensure the portfolio stays aligned with India’s evolving growth story and macroeconomic trends.

How Large Cap Mutual Funds Work

Large Cap Mutual Funds are investment vehicles that pool money from multiple investors to invest primarily in India’s top 100 companies by market capitalization, including established giants like Reliance, Britannia, ITC, and HUL. As per SEBI regulations, these funds must allocate at least 80% of their assets to these blue-chip companies, which are known for their strong market reputation and proven business models. Professional fund managers research and select the best large-cap stocks to create a diversified portfolio, with the fund’s value (NAV) calculated daily based on underlying stock performance.


The key advantage of Large Cap funds lies in their stability and lower volatility compared to mid-cap and small-cap funds. Since these companies are market leaders with established operations and steady cash flows, they tend to weather economic downturns better and provide consistent returns over medium to long-term horizons. This makes Large Cap funds ideal for conservative investors, first-time investors, or anyone seeking steady wealth creation with reduced risk, as they offer the perfect balance of growth potential and stability through exposure to India’s most reliable corporate performers.

1. Stability & Lower Risk

Invest in established companies with proven business models, offering more stability and lower volatility compared to mid and small-cap funds.

2. Consistent Performance

Large cap companies typically provide steady returns over the long term, making them suitable for conservative investors.

3. Liquidity

High liquidity as these companies are actively traded on stock exchanges, ensuring easy entry and exit.

4. Professional Management

Expert fund managers actively manage your portfolio, making informed investment decisions based on market research.

Conservative Investors

Ideal for those seeking stable returns with lower risk compared to mid and small-cap funds

First-time Investors

Perfect starting point for new investors due to their stability and lower volatility.

Long-term Wealth Creation

Suitable for investors with investment horizon of 5+ years for optimal returns.

Risk-Averse Investors

Those who prefer steady growth over aggressive returns will find these funds suitable.

1. SIP (Systematic Investment Plan)

Start with as low as ₹500 per month through SIP and benefit from rupee cost averaging and compounding.

2. Lump Sum Investment

Make one-time investments based on market conditions and your financial goals.

3. Tax Benefits

Long-term capital gains up to ₹1 lakh are tax-free. LTCG above ₹1 lakh taxed at 10%.

4. Flexibility

Switch between funds, increase/decrease SIP amounts, and redeem partially or fully as needed.

Simple 3-Step Process:

STEP 1 : Choose Your Fund
Select from our top-rated large cap funds based on your risk profile and goals.

STEP 2 : Complete KYC
Complete your KYC online with Aadhaar and PAN. It’s quick and paperless.

STEP 3 : Start Investing
Begin your investment journey with SIP or lump sum and track your portfolio online.

By Market Capitalization

Large Cap Fund

Long term capital growth

Mid Cap Fund

High risk, moderate returns

Small cap Fund

High risk, high returns

Large & Mid Cap

Invest in Top 250 stocks

Multi Cap Fund

Invest in stocks across sectors

Flexi Cap Fund

Flexibility to invest in securities across

By Strategic

Focused Fund

Invest in stocks across market cap

Contra

Invest across large, mid & small-cap stocks

Equity Linked Savings Scheme

Invest in World’s Top stocks

Index Funds

Invest in debt & arbitrage funds

Dividend Yield

Invest in debt & arbitrage funds

ETFs

Invest in debt & arbitrage funds

By Sector

Banks & Financial Services

Invest in stocks across market cap

Energy & Power

Invest in stocks across market cap

Pharma & Health Care

Invest in stocks across market cap

Technology

Invest in stocks across market cap

Infrastructure

Invest in stocks across market cap

Consumption

Invest in stocks across market cap

By Short Investment duration

Overnight Fund

For 1 day to 1 week

Liquid

For 1 week to 4 weeks

Ultra Short Duration

For 1 month to 3 months

Low Duration Funds

6 to 12 months

Short Duration

1 to 3 years

By Medium to Long duration

Medium Duration

Invest in stocks across market cap

Medium to Long Duration

Invest across large, mid & small-cap stocks

Long Duration

Invest in World’s Top stocks

Dynamic Bond

Invest in debt & arbitrage funds

Fixed Maturity Plans

Invest in debt & arbitrage funds

ETFs

Invest in debt & arbitrage funds

By Others

Banking and PSU Fund

Invest in stocks across market cap

Corporate Bond

Invest in stocks across market cap

Credit Risk Fund

Invest in stocks across market cap

Gilt

Invest in stocks across market cap

Floating Rate

Invest in stocks across market cap

Debt -Interval Funds

Invest in stocks across market cap

Aggressive Hybrid Fund

Long term capital growth

Arbitrage Fund

High risk, moderate returns

Balanced Advantage

High risk, high returns

Conservative Hybrid Fund

Invest in Top 250 stocks

Dynamic Asset Allocation

Invest in stocks across sectors

Multi Asset Allocation

Flexibility to invest in securities across