NFO
A New Fund Offer (NFO) is the initial launch of a mutual fund scheme, giving investors the first opportunity to invest in it. During this period, units are typically offered at a fixed price, usually Rs. 10 per unit. Similar to an Initial Public Offering (IPO) in the stock market, an NFO allows the fund to raise capital from investors to build its portfolio. Once the NFO period ends, the scheme is available for ongoing purchases at the prevailing Net Asset Value (NAV). NFOs are often introduced with specific themes or strategies, and investors should assess them carefully before investing.
Related Terms
Cash Contract
A cash contract is an agreement between two parties where goods are delivered at a...
EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric...
Ask Size
The ask size refers to the number of units of a security that an investor...
Long-Term Capital Gain Tax
Long-term capital gain tax is the tax levied on profits from the sale of shares...
Averaging Down
Averaging down is an investment strategy where an investor buys additional shares of a stock...
Dividend Stripping
Dividend stripping is a strategy where an investor buys a company’s stock just before the...
