- Research: Research fastidiously on the NFO, which should include its objective, strategy, and manager’s track record.
- Read Offer Document: Check the offer document to get familiar with the team’s tactic, risks, commissions, and the manager’s competence.
- Performance Track Record: Evaluate the past performance of the manager and the company that is influencing the long-term positive effect.
- Investment Objective: Make sure NFO’s purpose convers with your investment goals and risk appetite.
- Minimum Investment: Verify if the minimum requirement for investing is met by you.
- Lock-in Periods and Exit Load: For lock-in periods and exit load charges, this is an important thing.
- Risk Factors: Assess the risks connected to the NFO – market, liquidity and specific risks.
- Consult a Financial Advisor: Get your plan reviewed by a licensed advisor if you are not sure.
- Diversification: Split your holdings across various portfolio items in order to reduce risk.
- Investment Horizon: Align with your investment horizon and plan your financial goals accordingly.
New Fund Offer (NFO): Meaning, Work, Types, Rules & Advantages