How is the NAV calculated in an NFO?
During the offer period, units are issued at the face value (usually ₹10). After the NFO closes, the Net Asset Value (NAV) is calculated daily based on:
Market value of securities in the portfolio
Expenses and liabilities of the scheme
Divided by the number of outstanding units
This NAV becomes the trading value of the scheme after listing.
Related Articles
What is an NFO?
An NFO (New Fund Offer) is the first-time subscription offer of a new mutual fund scheme launched by an Asset Management Company (AMC). It allows investors to purchase units of the scheme at the face value (generally ₹10 per unit) during the offer ...
What is NAV? What NAV will I get if I invest today?
What is NAV? NAV stands for Net Asset Value — it represents the per-unit price of a mutual fund. In simpler terms: NAV is the market value of one unit of a mutual fund scheme. Each mutual fund scheme has a Net Asset Value (NAV) that represents the ...
What are the cut-off timings for NFO investments?
Unlike regular mutual funds, NFO orders can be placed anytime during the offer period. However, orders placed after 3:00 PM on the last day for SIP & 11:59 PM for Lumpsum of the NFO will not be accepted.
What is the time period for NFO allotment?
NFO allotments typically take place within 5 to 7 working days after the NFO closes. The AMC then credits the allotted units to the investor’s demat or mutual fund account.
How to apply for an NFO through 5paisa?
You can apply for an NFO on 5paisa using the following steps: Log in to the 5paisa Mobile App or Web platform. Go to the Mutual Funds section. Select NFO option on the MF Landing page. Able to LIVE NFO Schemes. Choose the desired scheme and enter the ...