Procedure for investing in a New Fund Offer (NFO)

Procedure for investing in an NFO starts with filling a form by the investor, which is available with the distributor.

This form is filled and submitted by the investor along with prescribed fees.

The investor must read the Offer Document (OD) before investing in a mutual

Fund scheme.

If the investor does not read the OD, he must read the Key Information Memorandum (KIM), which is available with the application form.

Once the form is filled and the cheque is given to the distributor, both these documents are forwarded to the RTA.

The RTA captures all the information from the application form into the system, and sends the form to a location where all the forms are stored and the cheque is sent to the bank where the mutual fund has an account.

After the cheque is cleared, the RTA then creates units for the investor.

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