Is it good to invest in nfo?

As a financial advisor with 15 years experience, my answer is: It depends on your investment goals and the specific NFO. New Fund Offers can be good opportunities if:- The fund house has a strong track record- The fund fills a gap in your portfolio- You're getting in at the initial NAV of ₹10- The fund strategy aligns with market opportunitiesHowever, there are significant risks:- No performance history to evaluate- Often heavy marketing hype without substance- Initial expenses can be higher- Many NFOs underperform after the initial periodMy general advice: Established funds with proven track records are usually safer bets. If you do invest in NFOs, limit it to 5-10% of your portfolio and choose only from reputable AMCs with experienced fund managers. Always read the scheme information document carefully rather than relying on marketing materials.

From my experience as a mutual fund investor, NFOs are a mixed bag. The advantage is getting in at unit price of ₹10 and the potential for early growth if the fund strategy works. However, I've seen many NFOs struggle to find their footing in the first year. The key is to look beyond the marketing and examine:- Fund manager's experience and track record with similar funds- The uniqueness of the fund's proposition - is it just following a trend or offering something genuinely different?- Expense ratio compared to similar existing funds- Market conditions - some NFOs launch at market peaksPersonally, I prefer waiting 6-12 months to see how the fund performs before investing, unless it's from a fund house I completely trust with a strategy I strongly believe in.