NFO opening THIS week: 8 new mutual fund offers to hit markets | Full list, dates and categories

Mutual fund NFOs: Approximately eight new funds will open for subscription this week. Fund houses launch new funds to complete their bouquet of offerings. Here is a detailed breakdown. Of these eight funds, three are funds of funds (domestic), two are thematic funds, one is an ETF, and one is a low-duration fund.

Mirae Asset Nifty Metal ETF FOF will open for subscription on February 10 and close on February 23. Groww BSE Hospitals ETF FOF will open for subscription and close on February 25. Angel One Silver ETF FOF will open for subscription on February 9th and close on February 23.

The Baroda BNP Paribas ESG Best-in-Class Strategy Fund will open for subscriptions on February 12 and close on February 26. The ITI Business Cycle Fund will open for subscriptions on February 13 and close on February 27.

The Angel One Silver ETF will open for subscription on February 9 and close on February 19.

The Bajaj Finserv Low Duration Fund will open for subscription on February 9 and will close on February 16.

Whenever an Asset Management Company (AMC) or fund house launches a new mutual fund, they offer it to investors at a discounted rate or introductory price before the fund is publicly listed. The capital raised through this fund is used to purchase market securities and company shares. This process, where a newly launched fund raises capital before being publicly listed, is called a New Fund Offer (NFO).

A New Fund Offer (NFO) is available for a limited time only. Therefore, investors can only purchase NFO units while the introductory offer is available, which typically lasts for two to three days. NFOs are available on a first-come, first-served basis and are issued in a limited number of units. Typically, the price per unit of an NFO is Rs 10. So, if you, as an investor, invest Rs 5000 in an NFO, you will be allotted 500 units, subject to availability.

Once the NFO (New Fund Offer) period ends, the AMC (Asset Management Company) makes the fund available as an open-ended fund for investors to buy and sell units. The newly launched mutual fund continues to buy and sell securities based on its investment strategy and financial objectives. The fund's NAV (Net Asset Value), which is initially Rs 10, can increase or decrease depending on the scheme's performance. An AMC typically launches a new mutual fund when there is demand for that type of fund.