In 2024, India’s IPO market was a goldmine, with many listings delivering 50-100% returns, fuelling investor frenzy. This has led some to mistakenly equate IPOs with Mutual Fund New Fund Offerings (NFOs), expecting similar windfalls. However, NFOs are not IPOs. While IPOs involve buying company shares with potential for quick gains, NFOs are new mutual fund schemes launched by asset management companies (AMCs) to pool money for diversified investments. Their returns depend on portfolio performance, not listing pops. With this distinction clear, let’s weigh the pros and cons of investing in NFOs.