What is an NFO?

A New Fund Offer (NFO) is when an asset management company (AMC) launches a new mutual fund for the first time in the market. It is similar to an Initial Public Offering (IPO) in the stock market. In the case of an NFO, investors can subscribe to the mutual fund at a fixed price, usually ₹10 per unit, for a limited period, generally 10 to 15 days.