New Fund Offer (NFO): Advantages and Drawbacks

Tue, 4 Feb 2025

5 min read

NFO (New Fund Offer) is the initial subscription offered for a new mutual fund scheme launched by an Asset Management Company. During this time, investors can buy units at a set price, typically nominal (e.g.10). It's an opportunity to invest in a new fund strategy. After the NFO period, the fund is listed and trades at its Net Asset Value (NAV), which changes based on the market value of its assets.

A New Fund Offer is like getting early access to a new investment opportunity. It's the initial sale of a mutual fund, giving investors a chance to buy in at the starting point and explore fresh avenues for potential growth. NFOs often focus on emerging trends and market demands, making them a hot topic among seasoned investors and newcomers alike.