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What is New Fund Offer (NFO) ?
A new fund offer (NFO) is the first subscription offering for any new fund offered by an investment company. A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.
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​Key Fetaures :
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A new fund offer (NFO) refers to the initial sale of fund shares issued by an investment company to investors.
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Similar to an IPO in the stock market, NFOs are intended to raise capital for the fund and attract investors.
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Even though NFOs are marketed, they are done less aggressively than IPOs, and target certain select groups of investors. As a result, new fund issues may be less noticeable to individual investors than IPOs.
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Investors should check an NFO's expense ratio and the performance of previous funds offered by the investment company before deciding to invest in an NFO.
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Investors looking to research new fund launches can monitor the press releases of various investment companies as well as news outlets dedicated to aggregating the latest fund news.
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