New NFO in market

n_khullar · #1 27th February 2008, 11:47 AM

Hi All,

I am pretty new to stocks and share, I got 22 this year and got some money as Graduation Gift, unlike other friends this time I decided to put a break on my spend money spree. Now I want my money to grow (my money is v v small though

).

I have been thru lots of tutorials to know atleast the basics.

I found 3 NFO's :

1)LIC Infrastructure Fund (An close-ended scheme)
2)Tata Growing Infrastructure fund (An open-ended scheme)
3)HSBC Emerging Markets (An open-ended scheme)

I am confused should I go ahead and invest my money, when market is low (unstable to be more precise) .... which one is better option.

My Portfolio: I feel I would play a bit safe at start, aims to learn this market. Capable to take small risks. Ready to give some time for growth.

Thanks for support.

gaurav chauhan · #2 27th February 2008, 02:21 PM

hi buddy,

The best bet would be putting some money in Infrastructure fund which is a better option. The next thing comes whether u want to invest in close-ended or open-ended.
In closed-ended ur money will be fixed for some yrs which means u can't take ur money back for that period whereas in open ended u can......
So take ur decision and play safe.........................

n_khullar · #3 27th February 2008, 02:36 PM

Hi Gaurav,

Thanks for the very quick response.
I have a fear that in objectives of infrastructure funds (esp Tata Growing Infrastructure) , it is said if we go with Growth option then 60% money will be invested in overseas.
If we take dividend option plan b, 60% will be invested in India.

1) Which is better plan a or b
2) Is any one going for these NFO and can care share the reason for taking them
3)Is it worth paying such a high entry load?

Also, What I understand was, close end mean once the particular period is over no one can buy that NFO also if we sell the fund we cannot buy from open market..

In open ended funds, fund can be bought even after the issue date.

Thanks friend