NFO
A New Fund Offer (NFO) is the initial launch of a mutual fund scheme, giving investors the first opportunity to invest in it. During this period, units are typically offered at a fixed price, usually Rs. 10 per unit. Similar to an Initial Public Offering (IPO) in the stock market, an NFO allows the fund to raise capital from investors to build its portfolio. Once the NFO period ends, the scheme is available for ongoing purchases at the prevailing Net Asset Value (NAV). NFOs are often introduced with specific themes or strategies, and investors should assess them carefully before investing.
Related Terms
Cash Contract
A cash contract is an agreement between two parties where goods are delivered at a...
Listing
Listing is the process where a private company makes its shares available for public trading...
Book Value
For a company, the book value refers to its Net Asset Value (NAV), which is...
Alpha
Alpha is a performance metric that measures how much a stock or portfolio has outperformed...
SIP
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular...
Investment Guidance Regular
One of the main advantages of regular mutual fund plans is the investment guidance provided...
