NFO Meaning

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NFO Meaning

NFO in mutual funds allows investors to buy units at a fixed initial price, offering a chance to invest in new strategies with potential gains as NAV fluctuates.

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NFO Benefits

NFOs offer investment in innovative mutual funds with flexibility in market timing, long-term capital lock-in, and reduced need for frequent market analysis.

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Disadvantages of investing in NFOs

NFOs lack performance history, may have high expenses due to promotion, often replicate existing schemes, and differ from IPOs in pricing and unit generation.

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NFOs offer early investment in new themes at lower prices with future profit potential, while mutual funds provide diverse, established schemes tailored to investor goals.

Purpose

NFO VS Mutual Funds

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NFOs have a limited subscription period, usually up to 30 days, while open-ended mutual funds allow investments at any time after their initial offering.

Availability to Invest:

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NFOs suit market-savvy investors with high risk-appetite and long-term goals, while mutual funds cater to diverse risks and horizons, requiring less market analysis.

Ideal for Investors:

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Investing in NFOs is suitable for those with market knowledge, risk appetite, and after analyzing AMC's history, reading scheme details, and matching investment goals.

Is It Good To Invest In NFO?