NFO
A New Fund Offer (NFO) is the initial launch of a mutual fund scheme, giving investors the first opportunity to invest in it. During this period, units are typically offered at a fixed price, usually Rs. 10 per unit. Similar to an Initial Public Offering (IPO) in the stock market, an NFO allows the fund to raise capital from investors to build its portfolio. Once the NFO period ends, the scheme is available for ongoing purchases at the prevailing Net Asset Value (NAV). NFOs are often introduced with specific themes or strategies, and investors should assess them carefully before investing.
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