Ask Value Research

Don't invest in NFOs

We do not recommend investing in new fund offers because these funds don't have a track record

Some New Fund Offers (NFOs) are currently open for subscription. Can you suggest which one is good for investment?
- J Ganesh Kumar

We do not recommend investing in NFOs. We believe that investing in an existing scheme with a proven performance record is better than betting on an untested fund. The only exception you can make is when a fund house launches a useful product that do not exist in the market. However, this is very rare. Often fund houses launch NFOs to complete their product line or trying to cash on a trend to amass more assets under its management.

This article was originally published on September 17, 2015.

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