IPOs and NFOs are similar in the sense that both entail raising money from the public. Like in the case of IPOs, NFOs are also kept open for subscription for a fixed period of time. Of course, the NFO is open for subscription for a much longer period than an IPO. Like in case of IPOs, the NFOs also entail a cost in terms of marketing costs, administrative costs, legal and compliance costs etc. The other similarity between IPO and an NFO is that both tend to be scattered around period of high growth and solid stock market returns. Both the NFOs and the IPOs are regulated by SEBI covering all aspects right from filing the prospectus to monitoring the actual allocation of funds. Lastly, both NFOs and IPOs tend to see frenetic subscription during market peaks. While IPO stories are well known, there are also stories of funds like Reliance Infrastructure Fund and the Morgan Stanley Growth Fund that have showed tremendous retail investors frenzy in the midst of their NFOs.