{"id":15466,"date":"2025-03-17T11:53:56","date_gmt":"2025-03-17T11:53:56","guid":{"rendered":"https:\/\/lxme.in\/?p=15466"},"modified":"2025-03-17T11:54:01","modified_gmt":"2025-03-17T11:54:01","slug":"what-is-nfo-and-how-can-investors-benefit-from-it","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/","title":{"rendered":"What Is NFO and How Can Investors Benefit from It?"},"content":{"rendered":"\n<p>Once a woman starts learning and managing her own money, she naturally becomes curious about newer financial concepts. The more she understands, the more she wants to explore different ways to grow her money. One such concept is <strong>NFO (New Fund Offer)<\/strong> a term that many women in our community have been asking about. So, in this blog we are going to cover NFO meaning, how does it work, and whether you should invest or not.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#What_is_an_NFO_in_Mutual_Fund\" >What is an NFO in Mutual Fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#How_Does_an_NFO_Work\" >How Does an NFO Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#Should_You_Consider_Investing_in_an_NFO\" >Should You Consider Investing in an NFO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#Still_wish_to_invest_in_NFO\" >Still wish to invest in NFO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#FAQs\" >FAQs:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#How_does_an_NFO_differ_from_a_regular_mutual_fund_investment\" >How does an NFO differ from a regular mutual fund investment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/#What_factors_should_investors_consider_before_investing_in_an_NFO\" >What factors should investors consider before investing in an NFO?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_NFO_in_Mutual_Fund\"><\/span><strong>What is an NFO in Mutual Fund<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>NFO stands for New Fund Offer, which is when a mutual fund company\/Asset Management Company (AMC) launches a new scheme to the public, inviting them to invest. It\u2019s like an IPO (Initial Public Offering) but for mutual funds instead of companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_an_NFO_Work\"><\/span><strong>How Does an NFO Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&#8211; An NFO is how a mutual fund starts a new investment scheme. For a limited time, investors can buy units of the fund at a fixed price (like an IPO is open for 3 days and you can apply to the IPO only during those 3 days).&nbsp;<\/p>\n\n\n\n<p>&#8211; The money collected is then invested in different assets like stocks or bonds based on the objective of a mutual fund scheme.&nbsp;<\/p>\n\n\n\n<p>&#8211; Once the NFO period ends, the fund becomes available for regular investment at its Net Asset Value (NAV), which changes based on market performance.<\/p>\n\n\n\n<p>&#8211; After the launch, new investors can buy the fund at the NAV price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Should_You_Consider_Investing_in_an_NFO\"><\/span><strong>Should You Consider Investing in an NFO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before you dive into an NFO, consider this:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>No Track Record:<\/strong> Unlike existing mutual funds, NFOs have no past data to assess performance.<\/li>\n\n\n\n<li><strong>Not Always a Better Deal:<\/strong> Just because it\u2019s new doesn\u2019t mean it\u2019s cheaper or better.<\/li>\n\n\n\n<li><strong>Risk Factor:<\/strong> You\u2019re investing without knowing how the fund will perform in real market conditions.<\/li>\n<\/ol>\n\n\n\n<p>Ideally, it\u2019s best to invest in existing mutual fund schemes since they come with historical performance data and other parameters to help you make informed decisions. On the other hand, NFOs are new schemes without any past data, making it difficult to assess their future performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Still_wish_to_invest_in_NFO\"><\/span><strong>Still wish to invest in NFO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you still wish to invest in an NFO, do your own research about the fund, check the objective of the scheme, parameters like fund manager, etc. and then make an informed decision. But make sure your investments align with all your goals, risk appetite, and time horizon.<\/p>\n\n\n\n<p>If you wish to invest in existing mutual fund schemes, then you can check out <a href=\"https:\/\/lxme.onelink.me\/95JV\/homefeed64\" target=\"_blank\" rel=\"noreferrer noopener\">Lxme<\/a> app and <a href=\"https:\/\/lxme.in\/invest\/\" target=\"_blank\" rel=\"noreferrer noopener\">invest in mutual fund<\/a>, which are well-researched, diversified &amp; expert-curated<a href=\"https:\/\/lxme.onelink.me\/95JV\/mymoneytab64\" target=\"_blank\" rel=\"noreferrer noopener\"> mutual fund portfolios<\/a>.<\/p>\n\n\n\n<p>While NFOs may seem exciting, they are not always the best investment option for everyone. If you\u2019re a beginner, stick to tried-and-tested mutual funds that align with your goals. However, if you\u2019re comfortable with a little risk and want to explore something new, you could explore investing a small amount after careful research.<\/p>\n\n\n\n<p>Bookmark this blog for your future reference.<\/p>\n\n\n\n<p>Comment \u201cInvest\u201d if you want to invest in expert-curated mutual fund portfolios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1742028156626\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_does_an_NFO_differ_from_a_regular_mutual_fund_investment\"><\/span><strong>How does an NFO differ from a regular mutual fund investment?<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An NFO in mutual fund is the initial launch of a new mutual fund scheme, where investors can buy units at a fixed price for a limited time period. Regular mutual funds, on the other hand, have an established track record, with units bought and sold at the prevailing Net Asset Value (NAV) based on market performance, which are already there in the market.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1742028192892\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_factors_should_investors_consider_before_investing_in_an_NFO\"><\/span><strong>What factors should investors consider before investing in an NFO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>For long-term wealth creation, existing mutual funds are a better option than NFOs because they have a proven track record, historical performance data, and established fund management. NFOs, on the other hand, are new and untested, making them riskier and harder to evaluate.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"How does an NFO differ from a regular mutual fund investment?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"An NFO in mutual fund is the initial launch of a new mutual fund scheme, where investors can buy units at a fixed price for a limited time period. 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NFOs, on the other hand, are new and untested, making them riskier and harder to evaluate.\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>Further read:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/sgb-redemption-dates-and-tax-guidelines\/\" target=\"_blank\" rel=\"noreferrer noopener\">SGB Redemption Dates April to September: Process and Tax Guidelines<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/reasons-to-invest-in-equity-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">10 Reasons to Invest in Equity Market<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/what-is-cdsl-easi-and-how-to-register-for-it\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is CDSL Easi and How to Register for It?<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Once a woman starts learning and managing her own money, she naturally becomes curious about newer financial concepts. The more she understands, the more she wants to explore different ways to grow her money. One such concept is NFO (New Fund Offer) a term that many women in our community have been asking about. So, <a href=\"https:\/\/lxme.in\/v1\/what-is-nfo-and-how-can-investors-benefit-from-it\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  What Is NFO and How Can Investors Benefit from It?<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":15481,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[649],"tags":[961,957,956,958,959,960],"class_list":["post-15466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-new-fund-offer-meaning","tag-nfo-in-mutual-fund","tag-nfo-meaning","tag-nfo-mutual-fund","tag-what-is-nfo-in-mutual-fund","tag-what-is-nfo-in-trading"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=15466"}],"version-history":[{"count":2,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15466\/revisions"}],"predecessor-version":[{"id":15480,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15466\/revisions\/15480"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/15481"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=15466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=15466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=15466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}