A new fund offering (NFO) refers to the initial sale of fund shares issued by an investment company to investors.
Similar to IPOs in the stock market, NFOs are designed to raise capital for the fund and attract investors.
Although NFOs are sold, they are less aggressive than IPOs and are targeted at certain select groups of investors. As a result, new fund issues may be less visible to individual investors than IPOs.
Investors should check the NFI expense ratio and the effectiveness of previous funds offered by the investment company before making a decision to invest in an NFI.
Investors wishing to explore the launch of new funds can follow the press releases of various investment companies, as well as news outlets dedicated to collecting the latest fund news.