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6 Unbeatable Options Scalping Strategies by Sivakumar Jayachandran! Guide to Mutual Funds
Module Units
- 1. Introduction: Mutual Funds
- 2. How Does a Mutual Fund Investment Work?
- 3. Different Types of Mutual Fund Schemes
- 4. Open-ended and close-ended Mutual Funds
- 5. Advantages of Mutual Funds
- 6. Mutual Fund Structure and Constituents
- 7. Concept of AUM
- 8. New Fund Offer (NFO)
- 9. What is an Offer Document?
- 10. Concept of Benchmark
- 11. What is NAV?
- 12. Risks Associated with Mutual Fund Investing
- 13. Beta and Sharpe Ratio - A Measure of Risk
- 14. Measuring Mutual Fund Returns
- 15. Concept of Rolling Returns
- 16. Capital Gains Tax
- 17. Direct and Regular Mutual Fund Plans
- 18. Equity Mutual Fund
- 19. Debt Mutual Funds
- 20. Hybrid Mutual Funds
- 21. Exchange-Traded Funds
- 22. Arbitrage Mutual Funds
- 23. Systematic Investment Plans (SIP)
- 24. Systematic Transfer Plans (STP)
- 25. Systematic Withdrawal Plans (SWP)
- 26. Understanding Your Financial Goals
- 27. How to Set-up and Achieve Your Financial Goal?
- 28. How to Choose the Correct Mutual Fund? Aligning Your Goals to Various Types of Mutual Funds
- 29. How to Evaluate a Mutual Fund Scheme Performance? – Equity
- 30. How to Evaluate a Mutual Fund Scheme Performance – Debt
- 31. How to Evaluate a Mutual Fund Scheme Performance? – Hybrid Funds
- 32. How Can You Invest in Mutual Funds?
- 33. Statement of Accounts (SOA)
New Fund Offer (NFO)
What is an NFO (New Fund Offer) and how does it work?
Just like a public company offers its shares to the public via an Initial Public Offering (IPO), an Asset Management Company (AMC) offers units of the mutual fund to the public via a New Fund Offer (NFO) in the stock market.
The NFO is a process which attempts to raise capital to purchase securities for the mutual fund scheme.
The AMC prepares Offer Document (prospectus) for the NFO, and after getting permission from SEBI, decides a suitable time for launch in the market.
There are three relevant dates related to NFO -
Opening Date
It refers to the date on which the fund opens for subscription to the public.
Closing Date
It refers to the date on which the fund closes for subscription to the public.
Subscription Reopening Date
After the NFO is over, the scheme will be open for entry and exit as it will now be a listed fund. The date at which the fund becomes available for trading in the stock market is the subscription reopening date.
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