When a NFO is launched, the mutual fund scheme is made available for accumulating the amount of capital. Using the capital, the Fund Manager creates a portfolio based on the scheme’s objectives. The Fund Houses have to comply with the regulations of Securities and Exchange of India (SEBI). A NFO period generally exists for around 15-30 days in India. After the end of the NFO period, the mutual fund company has to make the allotment of units of the new scheme within 5 days.