Will investing in an NFO help to minimise risk? Will it be more beneficial in the current market situation?
- HL Chopra
Generally speaking, one should avoid NFO because when investing in a mutual fund all that you have is the past track record and a new fund offer has no history. I don't see any reason why an investor should go for a new fund. In my opinion investing in an NFO does not minimise risk, in fact, I would say that there is a greater amount of uncertainty because you don't know how this fund is going to do. The only way to invest in a mutual fund is to look at its historical performance as well as the consistency of the fund manager.