Can I apply for both IPO and NFO at the same time?

Yes, there is no restriction on participating in both IPOs and NFOs simultaneously.

Do IPO and NFO applications require a demat account?

You would require a demat account if you apply for an IPO, as the shares would be allotted there. However, a demat account is optional for NFOs if you invest directly through the AMC in schemes other than ETFs .

Is there a lock-in period in IPO or NFO investments?

After listing, most IPO shares do not have a lock-in period for retail investors. Open-ended NFOs also do not have lock-ins, although investors may have to pay.

Can I redeem NFO units immediately after allotment?

Redemption is allowed for open-ended NFO schemes after the NFO period ends. Take a look at the exit load clauses before redeeming the units.

How are the returns of an IPO and NFO taxed?

The shares of an IPO are taxed under the rules governing equity capital gains. The taxation of NFOs depends on whether the scheme is equity-or debt-oriented.

Understanding the difference in IPO and NFO

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Understanding the difference in IPO and NFO

IPO

Understanding the difference in IPO and NFO

Recent years have witnessed a significant rise in participation in primary market opportunities. It may be a much-awaited company going public, or a new mutual fund scheme being launched. Investors constantly eye fresh opportunities to build wealth.