There has been 15 new fund offer launches in last month bringing inflow worth Rs 16,565 crore into the mutual fund industry. These fund offers have been spread across various sectors and categories.
“Most investors need not invest in NFOs. Funds need a six- to nine-month performance period to evaluate,” said Salonee Sanghavi, founder of My Wealth Guide.
She only recommends investing in an NFO only if the scheme has a new segment or strategy to offer.
“Every NFO should be looked at with the question of purpose. How does it benefit the portfolio,” said Kalpen Parekh, president of DSP Mutual Fund.
These fund offers may not always fit an investors portfolio as these could be products that the fund house is pushing out according to Parekh.
It is important for fund houses to time their launch their NFO’s during pockets of underperformance in spaces that are under-valued, he said.
