An NFO, or new fund offer, is the launch period when a new mutual fund scheme first takes money from investors, usually at ₹10 a unit.
A new fund offer is how a scheme opens. For a short window, usually one to two weeks, the fund house accepts money at a fixed price, normally ₹10 a unit. Units are allotted after the offer closes, and an open-ended scheme then reopens for buying and selling at its daily NAV within a few business days.
Points that often cause confusion:
Close-ended schemes, including fixed maturity plans, take money only during their NFO.
Each fund page has its returns, risk, costs, managers and everything it holds.