I am being asked by my agent to invest in NFOs that are being launched based on the ‘Make in India’ theme. Should I invest in these or look at the ones that have proven themselves in the market? - Ravinder Arya, Bhopal
How to pick up a suitable NFO?
<p>New Fund Offerings or NFOs can be an interesting investment option. Consider these parameters to decide if NFO is an appropriate one. </p>
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New fund offerings or NFOs can be an interesting investment option, but a lot depends on what these offer to investors. For instance, if an NFO has a unique and distinct offering, which is not available from existing funds and is something that you fancy investing in, you should go for it. Alternately, if an NFO has a fund manager who has proven skills and a track record that infuses confidence in you to invest in the fund, you should explore investing in it. Unless one of these conditions is met, you should stay away from putting money in an NFO. Anyway, there is nothing that should stop you from putting money in an NFO in the course of some months when it meets its promise.