InvestorQ : While investing in Mutual Funds, what kind of funds should be preferred for better returns - NFO or Funds that have been in the market for a long time?
Tushar Jambhekar made post

While investing in Mutual Funds, what kind of funds should be preferred for better returns - NFO or Funds that have been in the market for a long time?

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Lokesh Makhija answered.
2 years ago
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To my experience as an investor you need to choose the funds which have shown performance. Even though a lot of investors tend to go for NFO considering the price but the performance is untested. So it's better to go a fund which suits your investment needs and risk...also a though the tried and tested funded was also once a NFO

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AR Kadam answered.
2 years ago
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Returns doesn't depend on whether it's NFO and/or Funds being in the market. It depends on the fund manager stocks and it's performance, the fund manager holds in the portfolio. It is the responsibility of the investor and his advisor to choose the appropriate fund based on the financial goal of the investor and timeframe of the investment and many other factors related to the investor.
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VIKAS DELIWALA answered.
2 years ago
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Well in mutual funds both are preferable the few things to keep in mind is as follows:

In case of NFO :

1- How your investment is diversified by your portfolio manager.

For eg. If it was starting of 2018 and your NFO scheme or existing Mutual fund scheme is largely investing in Auto or power sector then till now your portfolio will be in loss.

So always find out which sectors your MF scheme has been diversified your income.

If it's existing Mutual fund for long time:

1- always track the past record.

2- Same as above (in which sectors your investment is diversified)

3- which company is managing your portfolio i.e. go for reputated firm / banks / amc only.

Conclusion: for better long term return i will always prefer large cap or blue chip MF schemes because you can easily track it through equity market and they have provided an awesome return even in worst market situations.

Few more points that will decide your MF scheme:
1- how much long to invest

2- debt and equity investment ratio.
(For secure and stable return go for debt)

(For better but risky return go for equity)

3- sip or one time investment.

4- always track your scheme and if you want any more details regarding scheme kindly follow me and visit my profile ✌️.


FOR MORE DETAILED ANALYSIS ON THIS QUESTION OR YOU WANT ANY SPECIFIC MF SCHEME ANALYSIS KINDLY FOLLOW ME ✌️


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2 years ago
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A New Fund Offer (NFO) is available to subscribers only for a limited time. Investors can subscribe to NFO during that specified time and at the specified price, generally fixed at Rs 10. NFO can give investors better opportunities when those mutual funds get listed in the market. Investors can get NFO at cheaper rates in comparison to the mutual funds that already exist in the market. They are comparable with the Initial Public Offering (IPOs) in which the public can purchase shares before getting listed on the exchange. While a company makes full efforts to promote its NFO, it won’t be sensible to miss on that particular NFO. However, one should put judgment and some analysis before settling for any NFO.

If you consider investing in existing mutual funds, the biggest advantage that you have is you can assess it on the basis of its past performance. You would be aware of the growth opportunities lying in that particular fund. However, existing funds will be available at their market rates and would usually be higher than the issue price. However, uncertainty persists in every investment no matter what it is.

Investing in NFO could be a little riskier than investing in the existing funds, as you don’t really know how it will turn out. However, if it turns out good, in the long run, it will have better opportunities for the investor and high growth potential. So technically speaking, if you are aware of existing funds that will fetch impressive returns, you can go on with them and if you are okay to take a little risk and can wait for 2-3 years, you can opt for NFO. However, just make sure you do proper analysis before entering into any investment. 
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AR Kadam answered.
6 months ago
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It really doesn't matter whether you choose NFO or existing Funds as the returns of the scheme depends on the category it invest and / or theme of investment and market performance in respect of the stocks hold by that particular scheme.

You should be clear why you want to invest and for how long and accordingly you can choose the scheme to meet your financial goals.

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