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.”