New Fund Offers (NFOs) are mutual fund schemes launched for the first time by Asset Management Companies (AMCs), allowing investors to subscribe before they become available for regular investment. Unlike Initial Public Offerings (IPOs) that reflect company valuations, NFOs typically start at a standard price of ₹10 per unit. Market expert Sunil Subramaniam describes NFOs as a 'necessary evil', necessary for deepening market penetration, especially in India where mutual fund investment is still low. In the previous year, over 200 NFOs were launched, indicating rising investor interest. However, NFOs pose risks including lack of historical performance data and potential behavioral biases like fear of missing out (FOMO). Investors are advised to evaluate the fund manager's pedigree, the fund's unique proposition, and the underlying investment strategy. Many NFOs replicate existing market strategies, which may not offer substantial advantages. Therefore, it is crucial for investors to ensure that an NFO complements their existing portfolio rather than being chosen solely for its novelty. Consulting with a financial advisor can help in making informed decisions regarding NFO investments.