Lesson 37 of 50 for advisers · How an NFO works · 4 min read · Reviewed 13 Nov 2026
At least 3 working days and at most 15 calendar days, except ELSS. Units are allotted within 5 working days of closing. The money must be invested as the scheme’s asset allocation says within 30 business days, extendable by another 30; after 60 business days out of line, investors may exit without a load.
An NFO stays open for at least 3 working days and no more than 15 calendar days. ELSS follows the Government’s own guidelines.
Units are allotted within 5 working days of closing, and the scheme opens for daily buying and selling within 5 working days after that.
The money must be invested as the scheme’s asset allocation says within 30 business days. The fund house’s investment committee may add 30 more, with written reasons.
If the money still isn’t invested after 60 business days, the scheme takes no new money and investors may leave with no exit load.
Key idea: An NFO is not cheaper because its NAV starts at ₹10; the price says nothing about value.
Try the short quiz on this page to check what stuck.
₹20 crore for debt schemes, ₹10 crore for debt ETFs and index funds and most other schemes, and ₹5 crore for other ETFs and index funds.
It may be parked in triparty repo on government securities, with no management fee.
The money is refunded, with the interest it earned.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.