How good is the Axis Mid-Cap Fund which is being launched soon? Do you think it’s worth getting into for a new investor?
This is a new fund offering (NFO), which is currently open for investments and invests in the mid-cap space like many other mid-cap funds. One should invest in an NFO if the new fund offers a compelling idea or theme that is missing from your existing portfolio and universe of mutual funds. Ideally, one should look for a fund that has a history, track record and performance to manifest investment. It is advisable to invest in proven funds in the same space such as HDFC Mid-Cap Opportunities, ICICI Prudential Discovery or DSPBR Small and Midcap fund. All of these funds have a sound track record and are highly rated by us. People generally get attracted towards new fund offers (NFO) due to its low NAV, which should not be the basis for investing in these.