Investing
NFO
Also known as: New Fund Offer
The first launch of a new mutual fund, sold at a fixed ₹10 unit price.
An NFO is when a fund house opens a brand-new scheme for the first time, usually at ₹10 per unit.
That ₹10 price is a marketing trick, not a discount. A new fund has no track record to judge it by.
Unless the NFO offers something genuinely new, an existing fund with a proven record is almost always the safer pick.
For example
A shiny NFO at ₹10 is not cheaper than an established fund at ₹500 NAV. You are just buying an unproven product with a nice sticker price.