- is it right to start sip in newly launched fund.
- is newly launched fund allotted to everyone.
- how to start sip in newly launched fund.
- how long does new fund offering takes to list.
- nfo benefits.
- difference between ipo and nfo.
- how to withdraw funds directly to bank account.
is it right to start sip in newly launched fund
investing in newly launched fund is not a big thing, it is just a normal investment that one can do. but while investing one have to analyse the fund before investing in it, because the newly launched fund sometimes had deficiencies like low value investment, market competencies, etc. however along with those deficiencies there are some good things which comes under the favour of the investors that is most of the nfo's will start with the initial price or nav of 10 rs which grows along with the time and the growth of the companies it invested in, so this helps the investor to gain more units at very lower prices.
one can invest in newly launched funds by two modes that is lumpsum mode and sip mode. investing through lumpsum mode allows the investor to buy lots of units just by investing all the funds at a time, however this mode is not that better because if the market goes down then the investor have to bear losses on all the units allocated to him. but in sip mode the market fluctuations does not put a disastrous impact on the whole fund as the investment done through sip can makes the average of units every time it brought. if we say is it right to start sip in newly launched fund then the answer would be "yes" because, directly or indirectly the whole investment amount will go to the stock market from where one can get returns, so investing in new fund offerings is not an issue. because the complete fund management is in the hands of the fund manager of the offerings so the gains and the losses are completely based on the decision and precision of the fund manager that how much efforts he puts into researching and analyzing the stocks to add in the portfolio of the mutual fund to diversify the risk.
is newly launched fund allotted to everyone
"yes", the newly launched fund is allotted to everyone who had a demat account. because one can get the brought units of newly launched fund or any existing funds in a way of statement of account (soa) or directly into the demat account. this units will be stored in the demat ac with the depository participants till the investor wants to sell the units.
how to start sip in newly launched fund
one can start investing in newly launched fund through lumpsum and systematic investment plan method. through lumpsum or one time payment method one can make the whole payment at a time and receive the units allocated to him within two to three days. but in systematic investment plan method one have to keep on investing a particular set amount on a particular date. as it helps to buy units at different prices which can average or reduce the risk if the fund was facing losses.
before investing in newly launched fund or any existing fund through sip, one have to select a particular amount and a particular date on which the amount get deducted from his account and get transferred to the fund manager for the units to be allocated in the demat account.
how long does new fund offering takes to list
the newly launched fund takes around 15 to 20 days to get completely listed in the market. for an example the currently launched mutual fund that is icici prudential silver etf fof direct growth scheme was launched on 13th of january with the net asset value (nav) of 10rs with the end date for the investment of 27th of january and units was get allocated to the demat account on 1st of february. however sometimes this duration may varies based on the types of mutual funds. sometimes it will get allocated within just 10 days and on the other hand sometimes it can also takes more then 20 days for the allocation of units and to be get listed in the market.
nfo benefits
the newly launched funds have some benefits in the favour of the investors some of this benefits are getting higher units allocation even with a low amount of investments. like mostly these funds are get launched with the nav of 10 rs so if any investor invest 1000 rs then he will receive 100 units with the nav of 10 rs in his demat account within 2 to 3 days. apart from this currently there are lots of mutual funds already available in the market so why should an investor invest in nfo so for that reasons the fund managers are coming up with set of quality stocks for getting investments form peoples which is a kind of benefit as these quality stocks helps to get higher returns.
difference between ipo and nfo
ipo stands for initial public offerings and nfo stands for new fund offerings. ipo is the concept related to stock market and nfo is the concept related to mutual funds. through ipo a company list it shares in the stock market by raising funds from general public by directly giving the shares of the company into his demat account. and with the use of nfo a fund manager of a bank or financial institution raises fund to invest in the stock of the companies listed in share market. however the expected returns from both of these would be same but sometimes ipo's provides good gains or worst losses as compared to nfo's for example the recently listed company latent view analytics launched its ipo with the price range of 190 rs to 197 rs but it got listed in the market with the price of 512 rs it means it already gave more than 150% of returns but on the other hand the ipo of paytm company that is one 97 communications ltd. was start its ipo with the price range of 2080 rs to 2150 rs but it got listed in the market at the price of 1950 rs it means it got listed at 9.3% of loss and currently the cmp of paytm is struggling between 962 rs to 994 rs. but nfo does not bear this kind of heavy losses because of its diversification feature.
how to withdraw funds directly to bank account
for withdrawal of the funds directly into the bank account one have to select the fund that he wants to sell. while selling the funds one can receive a message that he wants his money to be transferred in his trading account or directly into the bank account. after placing the sell order it would accuired by the broker app firstly after that the sell order get send to the mutual fund manager and then the order get initiated and after the turn around time (tat) of 2 to 3 days one can receive his money in his trading account or in his bank account.
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