A New Fund Offer (NFO) marks the launch of a scheme, where units are sold at par value. Some funds also charge an entry load during the NFO. After the NFO, when the scheme reopens for ongoing sales and redemptions, the NAV is announced on a daily basis. Thus, investors can purchase and sell the units directly from the fund house at NAV-related prices, after the closure of the NFO.

In the case of close-ended funds, investors can purchase units directly from the fund house only during the NFO. After the closure of the NFO, investors can purchase units only from the stock market ats market determined prices.

In the case of Systematic Investment Plans (SIPs), the investor has to submit a number of post-dated cheques in favour of the fund. The investor can also purchase units through the Electronic Clearing Service or Direct Debit mandate of his/her bank. The fund will then allot units to the investor on a date specified in the offer document at the NAV prevailing at that time.