What is the process through which units in a mutual fund scheme are offered to investors for the first time?
A
Systematic Investment Plan (SIP)
B
New Fund Offer (NFO)
C
Stock exchange listing
D
Dividend Reinvestment Plan
Correct Option:
B
Explanation
A New Fund Offer (NFO) is the initial subscription period during which a mutual fund offers units of a new scheme to investors for the first time before the scheme becomes operational.
