Money word, in plain English ← Back to all terms
NFO
A new fund offer, the first time a mutual fund scheme is open for investment.
Example. Units in an NFO are usually offered at ₹10 each before the scheme starts investing.
An NFO is a launch, not a bargain. The ₹10 starting price says nothing about value, because a new scheme has no track record, no portfolio to examine and no performance to compare. An existing scheme with years of history is usually easier to judge. The normal cut-off timing rules for deciding which NAV applies do not apply during an NFO.
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