New fund offerings (NFOs) from several mutual fund houses are currently open for investment.
Looking at the list of NFOs opening today alone, two ETFs and one equity fund in the large and mid-cap category are open for subscription.
These include Edelweiss Gold ETF FoF Dir-G, Edelweiss Gold ETF FoF Reg-G, and ABSL MSCI India ETF-G Scheme.
ABSL MSCI India ETF-G
Aditya Birla Sun Life Mutual Fund‘s ABSL MSCI India ETF-G fund will open for subscription on February 12 and close on February 16.
Edelweiss Gold ETF FoF Dir-G
Edelweiss Mutual Fund‘s Edelweiss Gold ETF FoF Dir-G will open for subscription on February 12 and close on February 23.
Edelweiss Gold ETF FoF Reg-G
The Edelweiss Gold ETF FoF Reg-G will also open for subscription on February 12 and close on February 23.
Similarly, many more NFOs are opening in the coming days. The list includes the following:
Old Bridge Flexi Cap Dir-G
Old Bridge Flexi Cap Dir-G will open for subscription on February 13 and close on February 23.
LIC MF Technology Dir-G
LIC Mutual Fund‘s LIC MF Technology Dir-G will open for subscription on February 12 and close on March 3.
Amid strong market trends and emerging investment themes, many mutual fund houses are launching new fund offerings (NFOs). Investors are often attracted by strong marketing and promises of “new opportunities.”
However, at a time when the Indian stock market has already delivered strong returns and many sectors are trading at high valuations, extra caution is necessary while choosing an NFO.
Keep These Things in Mind While Choosing an NFO
Domestic investment, a strong economy, and themes such as manufacturing, infrastructure, energy transition, and digitalization are currently supporting the market.
However, global uncertainty and elevated valuation risks remain. Therefore, investors should understand whether an NFO is based on a genuine early opportunity or an already overvalued trend.
Just because a fund is new does not mean it is better. Check whether its investment objective fulfills a real need in your portfolio. If a similar strategy is already available, an older and more established fund may be a better option.
Even if the NFO is new, the past performance and track record of the asset management company launching it are important. Consider how the company has performed across different market cycles.
The fund manager’s style and experience also matter. Aggressive strategies may lead to higher volatility, while a disciplined and balanced approach may suit long-term investors better.
Understand the principles of stock selection, sector allocation, and risk management. Very narrow or thematic funds may carry higher downside risk.
If similar funds already exist in the market, question the need for the new NFO. Consider whether it offers genuine differentiation or structural advantages.
Expense ratios and exit loads directly affect returns. Costs may be higher in the initial years, so comparisons are essential.
NFO promotions often create a fear of missing out. However, mutual funds are long-term investments. It may be wiser to invest after tracking the fund for some time.
It is important to note that Securities and Exchange Board of India (SEBI) regulations ensure transparency, but the final responsibility lies with the investor.
Always read the scheme information document carefully to understand the risks, terms, and conditions.
