A New Fund Offering (NFO) is when an Asset Management Company (AMC) launches a new mutual fund and offers it to investors for the first time. During this period, investors can buy units at a fixed offer price, usually ₹10 per unit. The idea behind an NFO is to raise capital for the fund so it can start investing according to its stated strategy—whether in stocks, bonds, or other assets.

NFOs can be a good opportunity for investors looking to get in early, especially if the fund follows a promising investment approach. However, unlike existing mutual funds with a performance history, NFOs are new, and their success depends on market conditions and how well the fund is managed.