It is raining mutual fund NFOs. Should you invest in them?
Some investors get swayed by the performance of certain fund houses and want to bet on their new schemes. If many schemes from a fund house are doing well, investors are confident of the NFO also doing well in the long term. May be they are right. “Some mutual fund houses get investors on the back of their track record of other schemes. There is a possibility that they manage the new schemes very well. But there is no guarantee. If you have a similar scheme with a proven record, bet on that,” says Santosh Joseph, Founder, Germinate Wealth Solutions, a wealth management firm based in Bangalore.