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NFO V/s Open Purchase
by Siddharth Panvalkar on Mar 22, 2006 01:01 PM

Well the only positive thing about an NFO is large number of units available.If we analyse the example given if the fund does well in the long run then we can continue to redeem units in chunks and will earn more money.Definitely redeeming 1000 units will earn more profit than redeeming 250 units as the issue price is Rs.10 in an NFO and not the existing NAV.

But then careful analysis has to be done before investing in an NFO.

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Don't get fooled by new funds