Can you apply for an NFO through Coin?

The asset management company would launch a new fun offer nfo, basically it is brought in the market to raise capital from the public so by shares, private bonds, government bond from the market. As the NFO is raised by the fund house public would get it at cheaper rates. We would discuss nfo in this article and about its peers too.

What is a coin?

The coin is a platform given by Zerodha from which the customer can buy mutual fun online, they do not have to pay any commission. They will be directly investing in the asset management company itself. Here the end-user can keep stocks, mutual funds, bonds and use this platform for trading in currencies, stock, derivatives, and commodities all in one DEMAT account.

For those of are new to the market and do not know anything about Zerodha, it is a brokerage firm in India. It is one of the finest stockbrokers, which has more than 22 lack, active users, it is registered with all the exchanges in India. It has membership with CDSL so it can offer all the services which are related to the DEMAT account. Why is Zerodha safe as it is a debt-free company. It is just an offered broking service other than that they do not have any business which brings loss to the company. No major violation has been reported in the last 10 years. For the information of the customers, all the shares and mutual funds are maintained by the CDSL in DEMAT account format. It has a transparent policy of doing business. Whenever a customer is opening an account in all the major concerns are mentioned above. The client money lying in the account cannot be used for any other purpose. As Zerodha is a member of the CDSL depository the account safety is taken care of by CDSL here Zerodha is just acting as a mediator for the transfer of shares from the secondary market to the DEMAT account.

Question-Related To NFO

The end-user can buy NFO directly from the coin, there is a minimum investment for each investment they can apply for some units. The option to buy NFO is currently not available in the coin APP. They are working on it would be soon available there soon. You have the option to modify that amount but it cannot go below the minimum stated as per the NFO. The customer cannot do SIP, once the units are allocated to him then after that he can go for the SIP option but at starting that option is not available. If the customer wants to check if the NFO is being allocated to him or not then that can be checked NFO page only. NFO would be usually open for 15 days but the number of days can be changed by an asset management company (AMC). They have the right to decide what would be the minimum amount that needs to be invested here. It is important that the customer keeps the balance or money in the Zerodha account as when the last day of the NFO period is there that day the amount would get deducted from the Zerodha account. Usually within 5 working days units will be allocated the customer will get an email confirmation about that about the allocation from the Zerodha’s end and the fund house will too send a confirmation mail on the registered email id. If the customer fails to buy or misses to buy the units then after some days the fund will be open for all of them that time they can think of buying that. It is imperative that sufficient fund is maintained in the account. If the customer has sold some stocks in the market that day or has sold the mutual funds is waiting for the future and options position to get closed then all of this is not considered. Separate funds have to maintained for purchasing NFO.

Conclusion:

It is important to make savings and invest in the market as many of us are working and have very little time for chasing the ever-changing market. So those who are are having less market knowledge it is good for them they invest in NFO, mutual funds, or bonds. So they do not have a headache of chasing down the market every day.