What is NFO and how does it work?

What is NFO and how does it work?

New Fund Offer (NFO) is the first time new scheme fund offering to the public that is issued by the Asset Management Companies (AMCs). NFOs are offered when an AMC launches a new scheme with the objective of raising capital for purchasing securities.

There are 3 types of NFO:

  1. Open-End Scheme

  2. Closed-End Scheme

  3. Exchange Traded Fund (ETF).

To learn more about the types of NFOs, refer to this article.

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