Mutual Funds & ETFs

What is the difference between an NFO and an IPO?

An NFO (New Fund Offer) is a mutual fund's first subscription window where investors buy units of a pooled scheme, while an IPO (Initial Public Offering) is a single company selling its shares to the public for the first time. In an NFO your money spreads across the fund's eventual portfolio of many securities; in an IPO you own a direct stake in one business. NFO units are usually priced at a flat Rs 10, whereas IPO share prices reflect company valuation and demand. They answer different questions: diversified exposure versus single-company ownership.