New Fund Offering
New Fund Offering
New Fund Offering
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering.
KEY TAKEAWAYS
- An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.
- Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an initial public offering (IPO).
- IPOs provide companies with an opportunity to obtain capital by offering shares through the primary market.
- Companies hire investment banks to market, gauge demand, set the IPO price and date, and more.
- An IPO can be seen as an exit strategy for the company’s founders and early investors, realizing the full profit from their private investment.

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Frequently asked questions
Common business and finance question and answer
Can NRIs invest in NFOs via KSquare?
Yes, most NFOs are open to NRIs subject to fund house guidelines. KSquare helps confirm eligibility for NRIs.
Are NFOs safe for first-time investors?
NFOs can be suitable for beginners, but they carry risks. KSquare helps assess fund strategies before you commit.
What are the charges or fees associated with NFOs?
Like regular funds, NFOs may involve expense ratios and entry/exit loads. KSquare discloses all costs transparently.
Can I invest in an NFO online with KSquare?
Yes, KSquare’s digital platform enables secure and quick online investments in NFOs with just a few clicks.
Can I cancel or modify my NFO investment once submitted?
No, once submitted during the NFO period, investments cannot be modified or canceled. KSquare recommends careful planning.
What is a New Fund Offering (NFO) in mutual funds?
A New Fund Offering is the first-time subscription launch of a new mutual fund scheme by an asset management company.