Welcome back. Now we'll discuss about nfo. And it was a quite different from how stocks are introduced into the market through our initial public offering or something known as IPOs. So we will study in detail what is NFS. When the AMC wants to introduce a new mutual fund in the market, they launch nfo. Through the nfo, the investors can subscribe into the mutual fund which is newly launched.

Every NFL has an opening date and a closing date. Within this opening data and closing date, investors have to subscribe into the nfo while purchasing mutual fund through an nfo the investor pays the face value of every unit of the mutual fund. The face value is declared by the AMC at the time of launching the mutual fund However, entry load may apply, while purchasing through nfo. Through nfo investors can purchase any number of units in mutual fund and any number of investors can purchase these units. There is no limit to the number of units that can be sold through nfo. This is different from shares, which are sold through an initial public offering IPO.

This number of shares is always limited, that the company is going to sell through IPO and oppose work on the first come first serve basis. This is another key difference between nfo and IPO. Like we mentioned before, during the nfo The is the investor always pays only the face value. The price per unit does not depend on the demand supply As is the case which is can India AMC is normally take about one month to alert the units purchased through an nfo