Nfo full form: A New Fund Offer

A New Fund Offer ( NFO ) in mutual funds signifies the introduction of a new fund. Investors may be the first to invest in the fund and explore its development potential from the start. NFOs can broadly be divided into three types: close-ended NFO , open-ended NFO , and Exchange-Traded NFO . NFO (New Fund Offering) - Any asset management company launching a new mutual fund in the market can raise capital for the same by announcing a new fund offer ( NFO ). How does an NFO Work? 1. Launch: The Asset Management Company (AMC) announces the launch of a new mutual fund scheme and prepares the offer document, which contains details about the scheme's objectives, investment strategy, risks, and terms. 2. Subscription Period: During the NFO period, which typically lasts for a few days or weeks, investors can subscribe to units of the new scheme by filling out an application form and investing money. 3. Allotment: At the end of the subscription period ... NFO stands for New Fund Offer, a process through which a mutual fund company launches a new scheme and sells units to investors at a fixed price. Learn how NFOs work, their advantages, limitations, and how to invest in them.