Understanding New Fund Offers (NFOs)

What is an NFO? Should you invest in them? NFO stands for New Fund Offer.

It is a initial subscription opportunity for a newly launched mutual fund scheme. NFO are of two type:

close-ended fund and open-ended fund. Close-ended funds have predefined lock-in period.

An investor can invest only during NFO period. But in open-ended fund,

there are no such limitation. Investors are free to invest in the fund later as well,

and fund will issue new units to the investors. So what are the factors you should

consider when investing in an NFO? First is the history and reputation of an AMC.

How long have they been in the business? Who are the fund managers? What is their track