Existing MF Vs NFO

[Vicky78]

Re: NFO vs IPO

NOPE there is no listing gains or anything. NFO is absolutely useless.

 

[mrindia]

Re: NFO vs IPO

Hi experts,
Usually people subscribe for IPO as, Price of IPO is usually less than its list price and we don't have to pay brokerage.

Similarly, Do we have any benefit to apply for NFO(esp for Open ended scheme)

DO we get any listing gains from NFO, Please let me know

No such thing with NFO. Subsription price is Rs10 per unit. That too has no practical advantage.

mr india

 

[VasanSuccess]

Re: NFO vs IPO

Then why is that many apply for NFO for Open ended equity schemes, they can as well buy in market, where u can have ur money used for other userful things.

i applied for Rel natural resource fund, and till date nothing happens. waste of interest only. If it list on NAV of Rs 10 per unit, Then its absolutly useless on my investment

 

[Vicky78]

Re: NFO vs IPO

Probably you could check this thread out http://www.traderji.com/mutual-funds-discussion-forum/15699-existing-mf-vs-nfo.html

 

[vk_pawar]

Re: NFO or Already Running

How profitable is it to invest in the upcoming, (much hyped) MF IPO's ? Advice please....

The basic question raised by you is the comparison of NFO and and existing MF's.

If the category of NFO is already exist its better to choose existing MF after analysis of its performance.

Vishal

 

[firewire1234]

Hi...

here are some insights

the first the thing to keep in mind when investing in an NFO is to understand very clearly that 'at par' NAV has absolutely no role to play in your future returns.

We invest with some objective. Also, we all have our own individualistic risk profile. It is, therefore, important to look at the NFO from these two perspectives does it meet our investment objective and our risk profile.

Under SEBI rules, mutual funds can charge up to 6% of NFO collections as marketing expenses to the scheme. These expenses are written off from the NAV over a period of 5 years.
Considering the amounts NFOs have raised these expenses are quite substantial.

for more insights u can go2 this page to read...
NFO vs. Old MF

Hope its useful.

 

[kbcreddy]

Hi, though it is late i am replying,

Instead of going by the hype created by NFO, better to invest in the existing schemes of MFs, whose track record is good.

 

[THETRADER]

Never invest in an NFO unless you have Ra very compelling reason to do so. Firstly, all issue expenses, upto 6% are charged to the fund. You start with Rs.9.40 NAV as against Rs.10 invested. (BTW, Sebi has been changing the rules back & forth on this 6%, about charging over a 5 year period, and charging the earlier exiters, etc., and dont know the current status). There are no dearth of funds available today.
The name IPO had so much on the investors, they were after the IPOs even if it is from MF. SEBI decided to change it to NFO (to avoid wrongly associated meanings of IPO). Still, that didnt help, and, investors are after NFO. Even the funds acknowledge that they get money only with NFOs and not on the existing funds.

 

[shruti624]

Re: NFO or Already Running

How profitable is it to invest in the upcoming, (much hyped) MF IPO's ? Advice please....

It depends what is the investment objectiove of the NFO (MF IPO) and whether you have similar options available in the market. But generally it is recommended that if u have an existing scheme with similar objective with a track record, then it is better to invest in that.

To see the latest NFO recommendation report go to this link: http://www.arihantcapital.com/knowledge-centre/reports.aspx
and to see ongoing NFO: http://www.arihantcapital.com/news-market/news-mutualfunds.aspx

 

[kalwarik]

never go to NFO
they r costly