Nfo Process In Mutual Funds At Jm Finance Mutual Fund Pvt Ltd

Abstract

The mutual fund industry has emerged as a powerful financial intermediary, playing a crucial role in channelizing public savings into capital markets. One of the important avenues for investors to participate in mutual funds is through a New Fund Offer (NFO). This study aims to explore the NFO process in mutual funds, focusing on its structure, objectives, regulatory framework, investor awareness, and impact on the market. An NFO represents the first-time subscription offer for a new scheme launched by an asset management company (AMC). This research investigates the key stages of the NFO process, including product conceptualization, regulatory approvals from SEBI, marketing strategies, subscription period, and allotment of units.
To understand investor perception and participation, primary data was collected through a structured questionnaire from 100 respondents. The study also examines the role of fund houses and distributors in promoting NFOs and how investor education influences decision-making during the offer period. Key findings highlight the factors that attract investors to NFOs, such as lower entry prices, potential returns, innovative schemes, and tax benefits. However, the research also points out the lack of awareness and misconceptions that affect rational investment decisions.