Several new fund offerings (NFOs) from different mutual fund houses are currently open for investment. Looking at the NFOs opening today, two ETFs and one equity fund in the large-
and mid-cap category are available for subscription. These include Edelweiss Gold ETF FoF Dir-G, Edelweiss Gold ETF FoF Reg-G, and ABSL MSCI India ETF-G.
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ABSL MSCI India ETF-G
The ABSL MSCI India ETF-G fund opened for subscription on February 12 and will close on February 16.
Edelweiss Gold ETF FoF Dir-G
This fund opened for subscription on February 12 and will close on February 23.
Edelweiss Gold ETF FoF Reg-G
This fund also opened for subscription on February 12 and will close on February 23.
In the coming days, several other NFOs will also open for subscription. These include:
Old Bridge Flexi Cap Dir-G – Opens on February 13 and closes on February 23.
LIC MF Technology Dir-G – Opens on February 12 and closes on March 3.
Amid strong market trends and emerging investment themes, many mutual fund houses are launching new fund offerings. Investors are often attracted by marketing campaigns and promises of new opportunities.
However, when the Indian stock market has already delivered strong returns and many sectors are trading at high valuations, caution is necessary before investing in any NFO.
Things to Keep in Mind Before Investing in an NFO
Domestic investment growth, a strong economy, and themes such as manufacturing, infrastructure, energy transition, and digitalization are supporting the market.
At the same time, global uncertainty and high valuations remain key risks. Investors should assess whether an NFO is capturing a genuine early opportunity or simply riding an already expensive trend.
A new fund does not automatically mean a better fund. Check whether its investment objective fills a gap in your portfolio.
If a similar strategy already exists in an established fund with a proven track record, that option may be more suitable.
Even if the NFO itself is new, review the track record of the asset management company launching it. Its performance across different market cycles can offer insights into stability and risk management.
The fund manager’s experience and investment style also matter. Aggressive strategies may lead to higher volatility, while a disciplined and balanced approach may suit long-term investors better.
Understand how the fund selects stocks, allocates across sectors, and manages risk. Narrow thematic funds may offer higher growth potential but can also carry greater downside risk.
If similar funds are already available in the market, question whether the new NFO offers meaningful differentiation or structural advantages.
Expense ratios and exit loads directly affect returns. Costs can sometimes be higher in the initial years, so comparisons with existing funds are important.
Promotions around NFOs often create a fear of missing out. However, mutual funds are long-term investments. In some cases, it may be wiser to observe the fund’s performance for some time before investing.
While SEBI regulations ensure transparency, the final responsibility lies with the investor. Always read the scheme information document carefully to understand the risks, objectives, and terms before making an investment decision.