Introduction:
A New Fund Offering (NFO) is when an asset management company launches a new mutual fund scheme to the public.

What Makes NFOs Different:

  • Initial units offered at ₹10
  • Fresh investment ideas or themes
  • Opportunity to enter early into a new strategy

Pros & Cons:
Pros:

  • Potential for early growth
  • Innovation or niche sectors

Cons:

  • No performance history
  • Might carry higher risk

When Should You Invest?

  • If the theme aligns with your goals
  • If the fund manager has a strong track record

Conclusion:
NFOs can offer value, but due diligence is key. Don’t just invest because it’s “new.”