Published: 29th Aug 2024
By: Value Research
In the last three years, more than 300 new equity and hybrid funds have been launched, collectively raising a whopping Rs 1.64 lakh crore. If you are considering adding NFOs to your portfolio, ask these three questions before making an investment decision.
Invest in an NFO only if it adds something new to your portfolio. For instance, you may consider investing in an NFO if it adds a new asset class to your portfolio.
Invest in a new fund only if you think it will help you achieve your investment goals. If your portfolio already consists of funds that are sufficient to meet your financial goals, there’s no point in adding a new fund.
If there exist funds with an investing strategy similar to that of an NFO, it’s wiser to opt for them as you can base your investment decision on their past performance. If similar funds have performed poorly in the past, you should avoid the NFO.