NFO Alert: Invesco Mutual Fund is all set to launch its two New Fund Offers (NFOs) tomorrow, April 23, with a minimum investment of just Rs100. Both NFOs will remain open for subscription until May 7, 2026, and are open-ended, allowing investments and redemptions post-NFO.
The fund focuses has on the banking sector, and its benchmark is the Nifty Bank Total Return Index, which means the fund will invest in the shares of banks included in the Nifty Bank Index in the same proportion.
Entry into the fund is extremely easy; investors can invest starting from just Rs 100, either through a lump sum or via an SIP. During the NFO period, the offer price for the units has been set at Rs 10.
However, it has been placed in the ‘Very High Risk’ category, as the banking sector is characterised by high volatility and is significantly influenced by economic conditions.
Both schemes follow a passive investment strategy, meaning fund managers don’t actively select stocks; instead, they replicate a specific index. This keeps costs low, but returns depend on market performance. A slight divergence between the fund’s returns and the index may occur due to tracking error. According to experts, index funds suit investors seeking long-term, low-cost investments. The Nifty Bank Index Fund represents a high-risk, high-return sectoral play, while the Sensex Index Fund offers relatively more diversified exposure.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
