Start a SIP in NFOs!

Oct 19, 2019 6:00 AM 1126 views

We have recently enabled SIP investment in NFOs (New Fund Offers). SIP would be available in most open-ended NFOs schemes if offered by the AMC and exchange.

What is a NFO?
NFO, abbreviation for New Fund Offer is a new scheme launched by an Asset Management Company (AMC) for the very first time in the market. Subscribing to NFO provides capital to the AMC to purchase securities for the scheme. 

What is a SIP?
SIP (Systematic Investment Plan) is a mode of investment in mutual funds where you invest a fixed amount of money in a particular scheme at a regular interval. There are multiple benefits to this which make it one of the best modes for long term wealth creation.

Why invest via SIP in NFO?
Investors may not want to invest a large amount in NFOs without knowing their performance. The SIP option allows investing in chunks to average out the acquisition cost of units.

How to setup a SIP in NFO?
Setting up an SIP in NFO schemes is no different from making a onetime investment in NFO. Below is the process to initiate investment through SIP in NFOs.

Key points

  • SIP would be available only in those NFOs in which it is enabled by AMC & Exchange.
  • First Order Today option is mandatory for NFO SIP, i.e you will have to make your first installment at the time you register for the SIP. 

Process to start a SIP in NFOs:
1. You can initiate SIP in NFO from two places: “NFO Updates” and “Invest”

2. Select the SIP button for the particular scheme. Please note that the button will be enabled only if the AMC and exchange allow SIPs in the scheme.

3. Now enter the SIP details and setup your payment. That’s it!

Have more questions? Checkout our FAQs or reach out via phone, email, or chat!
Check support section on your dashboard for contact details.

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Tags: #Finance

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