During a New Fund Offer (NFO), units are issued at Face Value.

Here's a step-by-step explanation:

1. A New Fund Offer (NFO) is the first subscription offering for any new fund offered by an investment company.

2. The units of the fund during the NFO period are offered at a fixed price which is usually at a nominal price of INR 10 per unit. This price is also known as the Face Value.

3. The face value is the original cost of the unit when it was first issued and does not change over time due to market fluctuations.

4. The issue price, net asset value, and market price come into play after the NFO period when the fund is open for subscription to the public and starts trading on the exchange.

5. Therefore, during an NFO, units are issued at their Face Value.

Question

During a New Fund Offer (NFO), units are issued at Face Value.

Here's a step-by-step explanation:

1. A New Fund Offer (NFO) is the first subscription offering for any new fund offered by an investment company.

2. The units of the fund during the NFO period are offered at a fixed price which is usually at a nominal price of INR 10 per unit. This price is also known as the Face Value.

3. The face value is the original cost of the unit when it was first issued and does not change over time due to market fluctuations.

4. The issue price, net asset value, and market price come into play after the NFO period when the fund is open for subscription to the public and starts trading on the exchange.

5. Therefore, during an NFO, units are issued at their Face Value.

Knowee AI · Accepted Answer

During a New Fund Offer (NFO), units are issued at Face Value.

Here's a step-by-step explanation:

1. A New Fund Offer (NFO) is the first subscription offering for any new fund offered by an investment company.

2. The units of the fund during the NFO period are offered at a fixed price which is usually at a nominal price of INR 10 per unit. This price is also known as the Face Value.

3. The face value is the original cost of the unit when it was first issued and does not change over time due to market fluctuations.

4. The issue price, net asset value, and market price come into play after the NFO period when the fund is open for subscription to the public and starts trading on the exchange.

5. Therefore, during an NFO, units are issued at their Face Value.

During New Fund Offer (NFO), units are issued at2 pointsa) Issue Priceb) Face Valuec) Net Asset Valued) Market Price

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