What are the Types of NFOs? After learning NFO full form and what NFO is, it is time to have a quick look at its different types. NFOs are categorized based on their investment objective and asset allocation as follows: Open-ended NFOs Open-ended NFOs allow investors to enter and exit the fund anytime after the New Fund Offering period. How does an NFO Work? 1. Launch: The Asset Management Company (AMC) announces the launch of a new mutual fund scheme and prepares the offer document, which contains details about the scheme's objectives, investment strategy, risks, and terms. 2. Subscription Period: During the NFO period, which typically lasts for a few days or weeks, investors can subscribe to units of the new scheme by filling out an application form and investing money. 3. Allotment: At the end of the subscription period ... NFO stands for New Fund Offer, a process through which a mutual fund company launches a new scheme and sells units to investors at a fixed price. Learn how NFOs work, their advantages, limitations, and how to invest in them.
