NFO Explained: Dive into the World of New Fund Offers

What is an NFO and how does it function?

n NFO, or New Fund Offer, denotes the debut offering of a scheme to investors by Asset Management Companies (AMCs). AMCs introduce NFOs with the primary goal of collecting capital to invest in various securities.
NFOs come in three distinct flavours:
  • Open-End Scheme: A continuously available scheme for subscription and redemption.
  • Closed-End Scheme: A scheme with a fixed maturity period, typically not available for continuous transactions.
  • Exchange Traded Fund (ETF): A marketable security tracking an index, commodity, or a collection of assets.

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