Skip to main content

Mutual Fund NFO

Top SIP Funds to Invest in India Online 

Should you Invest in Mutual Fund NFO?

The subscription to any NFO starts with Rs 10 for a unit, which can also be driving motive for an investor to make the investment.

If you are a mutual fund investor, one of the ways to invest is through New Fund Offers or NFOs. When a mutual fund comes up with a new fund or series of a scheme for subscription, it is termed as New Fund Offer or NFO.

Currently, there are 10 New Fund Offers open for subscription. Before The NFOs are catagorised into income scheme, growth scheme and ELSS schemes. You can also take tax benefit by investing in ELSS NFO.

However, should you invest in NFOs when there are a multitude of tried and tested funds on offer? Opinion of experts appears to be divided on this issue.

in 2017 so far there have been 30-odd mainboard IPOs. But one-third of them are trading below issue price. On the other hand, most of the equity NFOs launched are doing well. The reason being the judicious portfolio approach taken by fund managers. NFOs may be a new product with no history, but the experienced fund manager and the time-tested portfolio approach ensure that investors' interests are always protected irrespective of market conditions. "With a single stock or security, such an approach cannot be taken and hence it is fraught with risk of money loss

New fund offers have the potential to gain momentum significantly once they are being traded through a successful campaigning. These NFO's can be open-ended or close-ended that is, under open-ended, you can enter the market and purchase any number of share through mutual fund schemes anytime while under close-ended, the subscription to make an investment is time-bound where the issuance of shares is also limited.

The subscription to any NFO starts with Rs 10, which can also be driving motive for an investor to make the investment and purchase more units. However, you should ideally track all the factors before subscribing to any NFO.

Investors need to exercise caution before committing their money to NFOs. "We fail to find a compelling enough reason for investors to opt for newly launched funds, over funds that have well-established track records of navigating challenging market cycles. Anecdotal evidence tells us that most investors still invest into NFO's for all the wrong reasons – topping the list is the fallacious belief that 'a low NAV is cheap', and it is, therefore, better to invest into an NFO because it has a net asset value of Rs. 10. As the sad plight of most of the NFO's launched shortly before the carnage of 2008 will show, this is far from the truth! Some of these NFO's are still tottering in the red, even a decade later

If an NFO fails to collect enough funds, its marketing and distribution costs would be apportioned over a smaller asset base, leading to a higher expense ratio and compromised returns. This risk is more imminent in the case of NFO's launched by smaller AMC's that do not have the marketing firepower to reach sizeable swathes of the investing community. More equity-oriented NFO's are launched when markets have already gone up significantly, with the intent of cashing in on buoyant retail investor sentiment more than anything else. This may lead to a poor initial investment experience for uninformed first-timers who were unable to resist the allurement of those colourful billboards

The only time an NFOs might be worth considering is if it's one that explores a completely untouched theme that fits in with your investment portfolio. Considering the plethora of funds already available today, the launch of such an NFO remains quite a remote possibility.     


Avoid NFOs If a proven long term product in the same category already Exists           


SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

LIC Leave Encashment Plan

LIC Leave Encashment Plan       Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms fro

Power of Compounding in Investments

Power of Compounding in Investments Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich Top 10 Tax Saver Mutual Funds for 2017 - 2018 Best 10 ELSS Mutual Funds to Invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Tata India Tax Savings Fund  3. Birla Sun Life Tax Relief 96 4. ICICI Prudential Long Term Equity Fund 5. Invesco India Tax Plan 6. Franklin India TaxShield  7. Reliance Tax Saver (ELSS) Fund 8. BNP Paribas Long Term Equity Fund 9. Axis Tax Saver Fund 10. Sundaram Diversified Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300

MF SIP Top Up Online

Mutual Fund SIP Top Up Online As your monthly income grows, so should your savings. With this facility, you can increase your existing monthly SIP contributions. This can be done on a half-yearly and yearly basis. And you can top up with a minimum of Rs.500 per installment or multiples of Rs.500 as per your convenience.

Kotak Banking Exchange Traded Fund (ETF)

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Kotak Banking Exchange Traded Fund (ETF) Kotak Mahindra Mutual Fund has launched Kotak Banking Exchange Traded Fund ( ETF ). The fund aims to provide returns before expenses that closely correspond to the total returns of stocks belonging to the CNX Bank Index , subject to tracking error. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now