As the equity markets head upwards, new fund offers from mutual funds are on the rise. NFOs could be open-end or closed-end for segments such as debt, fixed maturity, hybrid funds and equity.New Fund Offers (NFOs) are first time subscription offers for a new scheme launched by an asset management company. Closed-end funds, which generally have tenure of 3-3.5 years, can be bought only during the offer period, while an investor can purchase units of an open-end fund anytime. Wealth managers say investors must avoid closed-end NFOs, which usually are just a play on various themes in vogue. They advise investors to stick to open-end schemes from mutual fund houses with a good track record.In the case of existing schemes, the portfolio and the fund manager's style of investing are known.

Source: Economic Times June 29, 2017 04:41 UTC