Explainer: What is a mutual fund NFO? What are key considerations before investing in NFO?

New fund offers (NFO) in mutual funds is similar to initial public offering (IPO) where a company before launching its share on the stock exchange offers the shares to the investors for subscription. In a similar manner, before launching the fund officially in the market the mutual fund houses offer the units so that investors are able to make an investment in that particular fund.

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