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NFOs
by Ashok Chintamani on May 17, 2007 05:07 PM   Permalink

Hi. In my opinion, while there is no harm in investing in NFOs that are expected to perform well; given the nature of the fund, past reputation and performance of their schemes over a period of time, you should take care that :
* You understand the objective of the scheme and likelihood of its' doing well, given the overall scenario.
* Take care of not subscribing to NFOs that are sectoral in nature, as this would narrow down diversification.
* Not to fall for themes that have fancy names but the underlying investment avenues are similar to ongoing schemes.
* Do bear in mind that it takes time for a scheme to give returns!. To that extent, it is also prudent to invest in ongoing schemes that have a good track record and are also rated by independent agencies.

Happy investing!

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