RE:NFO Vs Existing funds
by Prashant Rana on Mar 21, 2006 03:08 PM Permalink
My interpretation is that what the author means is that if there is a fund a and nfo fund b, and both appreciate by 10%, there value is the same and a 10 rupee nfo does not mean that you go and but every nfo which comes up in the market. Whether both appreciate by 10% is an assumption.
The main advantage that the old funds score is that you have some view of the past performance. you can also see the portfolio breakup and see whether you see any growth in the portfolio.
Also one can talk about the expenses which the fund house amortises in the first 5 years which effects the NAV.
As said earlier it does not mean that one does not invest in NFOs at all. Its just that you should keep a diversed portfolio and look for longterm growth in current scenarios.
Please note: Past performance may or may not be sustained in future.
RE:NFO Vs Existing funds
by KLN on Mar 21, 2006 02:56 PM Permalink
it depends on the fund manager's expertise. one of the nfo that is performing well is principal large cap.
