Mutual Fund Basics
New Fund Offer (NFO)
What an NFO is and when it is worth considering.
Updated 30 September 2026 · SEBI rules as of 2026
Launch price
Usually ₹10
Mutual Fund BasicsOverview
An NFO is the launch of a new scheme, usually at ₹10 per unit. The ₹10 price is not a discount; evaluate the strategy, fund manager and whether a similar scheme already exists.
| Particular | Details |
|---|---|
| Launch price | Usually ₹10 |
| Subscription window | Few days to 2 weeks |
| Open-ended | Reopens for sale within days |
| Closed-ended | Only via exchange later |
Checklist
- Is the category new to your portfolio?
- Track record of the manager / AMC
- Expense ratio
- Benchmark and index-replication (for passive NFOs)
- Avoid chasing thematic fads
Frequently asked questions
Is NFO cheaper than existing funds?
No — NAV level does not determine value.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.