What is (New Fund Offer) NFO's? How to Evaluate & Invest In It?

Arabian Petroleum Ltd. Ipo11 Jul, 2024Finance

New Fund Offers (NFOs) are similar to Initial Public Offerings (IPOs) but for mutual funds. When an Asset Management Company (AMC) launches a new mutual fund, it does so through an NFO. During this period, investors can purchase units of the mutual fund at an initial price. NFOs have a launch date and a closure date. The period between these dates is known as the NFO period. After this period ends, the fund becomes open for regular transactions where investors can buy or sell units.