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Learn with ETMarkets: New Fund Offer (NFO) of mutual funds

Sumary of Learn with ETMarkets: New Fund Offer (NFO) of mutual funds:

  • A new fund offer (NFO) is a first-time subscription offer for a new scheme that has been launched by an asset management company…
  • Once the NFO is over, the fund will reopen for subscription again and investors have the option to subscribe at the prevailing net asset value (NAV) Difference between a mutual fund NFO and an equity IPO:An equity IPO is done by a single company, which often seeks capital for expansion or to give an exit to an existing investor…
  • On the other hand, an NFO from a mutual fund collects money from investors and allocates that to a basket of securities (stocks or bonds or government securities and so on), based on a stated strategy….

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