Existing MF Vs NFO

[mrindia]

Re: NFO or Already Running

You are mistaken if you think that no. of units allotted matters if you go for Growth option. Actually the % gain counts. So do not get lured by Rs10/- offer & be guided by portfolio, risk appetite n track record. Go for a good running fund.
cheers!

 

[sanjoy_roy]

Re: NFO or Already Running

hi,

I wanted to invest in UTI Long Term Advantage Fund series - II, which is an ELSS. it opened on Dec 19, '07 and would close on Mar 19 '08.

now my query is, if I invest in the fund now would the units be issued now or after Mar 19 '08?

kindly advice.

thanks,
Sanjoy

 

[dinakaran]

Mutual Fund Doubt

Dear all,

I am new to mutual fund. I have a doubt.

If i purchase an already listed mutual fund that cost me more but if i purchase an NFO that would cost me Rs. 10 only and number of units i will get more. If there are any crashes the losss would be less for me and if i kept the NFO mutual fund 2 or more years i will get a moderate returns for my least investment.


Kindy suggest me.

Thanks in Advance.

 

[ramsvenku]

Re: Mutual Fund Doubt

Dear all,

I am new to mutual fund. I have a doubt.

If i purchase an already listed mutual fund that cost me more but if i purchase an NFO that would cost me Rs. 10 only and number of units i will get more. If there are any crashes the losss would be less for me and if i kept the NFO mutual fund 2 or more years i will get a moderate returns for my least investment.


Kindy suggest me.

Thanks in Advance.

Hi,
Don't be dual minded, be patient, park your money for mininum 6+ months you will getting good returns, before which NFO you have purchased??? which is already listed...?

Happy investing
Rams

 

[krishna23]

Re: Mutual Fund Doubt

this kinda is silly but let me try and explain
say u wanna invest Rs25000
in case of nav being 10 u get 2500 units
say nav goes to 12 in a year now ur investment is worth 30000...return is 20% pa
in case of nav being 25 and same 20 % return pa u get 1000 units for ur cost and when u sell at nav of 30 u get 30k...
bottom line is don't look at the nav look at the percentage return...
now for loss
incase of market crashes and nav falls 50% for yr rs10 fund ur 25000 becomes 12500(=2500x5);

 

[MFadvisor]

Re: Mutual Fund Doubt

Dear all,

I am new to mutual fund. I have a doubt.

If i purchase an already listed mutual fund that cost me more but if i purchase an NFO that would cost me Rs. 10 only and number of units i will get more. If there are any crashes the losss would be less for me and if i kept the NFO mutual fund 2 or more years i will get a moderate returns for my least investment.


Kindy suggest me.

Thanks in Advance.

In NFO you will get the units at Rs. 10 while in existing Fund you will units at the price of that particular day. from investing perspective if both the funds are similar you will make similar returns. Many people try to time the market by investing on the days when markets crash

 

[ucalegon]

Re: Mutual Fund Doubt

Dear all,

I am new to mutual fund. I have a doubt.

If i purchase an already listed mutual fund that cost me more but if i purchase an NFO that would cost me Rs. 10 only and number of units i will get more. If there are any crashes the losss would be less for me and if i kept the NFO mutual fund 2 or more years i will get a moderate returns for my least investment.

Question: If I told you that Reliance Industries is at Rs. 2500 and Champaklal Undergarments Limited is at Rs. 10 would you rather buy the latter?

In mutual funds life is even more simple - current market price does not matter. Even buying units of something whose NAV is Rs. 300 can be better than a Rs. 10 NFO.

I wrote about this sometime back.
Read: http://blog.investraction.com/2006/12/is-rs-10-mutual-fund-better-than-rs-100.html

Note: (closed ended) NFOs have a hidden 6% cost. Meaning For every Rs. 10,000 you invest, you are giving away Rs. 600. That means the fund has to give 6% for you to just break even! Don't invest in closed ended funds.

 

[Saint]

Re: Comment on recent NFO's

Recent, Past, Present, Future - Any NFO occuring during this period is a bad investment choice.

Well put,Vicky....

 

[Vicky78]

Thanks Saint!

 

[VasanSuccess]

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