New Fund Offers (NFOs) are generally introduced when the markets are doing well. As this is the time when more people are attracted to markets, giving an opportunity to mutual fund companies to make the most of it. This year also, when markets have mostly done well, several new fund offers were launched by asset management companies (AMCs).
Investors are often attracted to new fund offers (NFOs) from Mutual Fund companies because they come cheaper. They also hope that the NFO may offer better returns than the already existing funds in the long run. However, experts say that one should take caution before deciding to invest in an NFO.
According to Vikas Singhania, CEO, TradeSmart, even as the price is low, there are certain risks of investing
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