New fund offer
A new fund offer or NFO refers to the launch of a new fund by an AMC. The money raised through an NFO is invested by the fund house in the markets, and the units are then issued to the initial investors.
An NFO behaves similarly to an initial public offering (IPO) of equity shares by a company. Just as new shares of a just-listed company are distributed among investors in an IPO, new units of a new fund are distributed among investors in an NFO.