NFO or New Fund Offer is a first-time subscription for a new mutual fund, allowing investors to buy units at a fixed price before public trading, crucial for raising initial capital.
Mutual funds pool money from investors to invest in stocks, bonds & assets. Managed by professionals, it offers diversification & caters to various financial goals and risk levels.
NFO (New Fund Offer) refers to the initial offering of a new fund, whereas a mutual fund is an established investment fund that has been operational for some time.
NFO (New Fund Offer) aims to raise capital for the new fund, while a mutual fund pools investments for ongoing asset management.
NFO is available only during the initial offering period, whereas a mutual fund is available for investment at any time.
The price of an NFO is fixed during the offer period, whereas the price of a mutual fund varies based on market value
An NFO does not have a track record since it is a new launch, whereas a mutual fund has historical performance data available for assessment.
Investors typically have less information about an NFO's potential, whereas they have more information about a mutual fund based on its past performance.
NFOs carry higher risk due to the lack of history, while mutual funds can have their risk assessed based on historical performance data.