New Fund Offer (NFO)
The first-time subscription offer of a new mutual fund scheme.
Definition
A New Fund Offer (NFO) is the initial subscription period during which an asset management company launches a new mutual fund scheme, usually at a fixed unit price of ₹10. It is the mutual-fund equivalent of an IPO.
Example
During an NFO, investors can buy units at ₹10 each before the fund starts investing and its NAV begins to fluctuate.
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