Existing MF Vs NFO

[Vicky78]

Re: Comment on recent NFO's

The NAV of a fund does not matter. Lower navs are not cheaper. The NAV value varies based on the movement of the underlying stocks in the MF portfolio.Also these stocks in the portfolio keep changing. As long and as the fund is managed properly, the Nav "gain" should be the same.

There is a thread where I have explained in detail how an NAV is calculated. I cant find that thread though

The following are the disadvantages of a NFO

There is no record to prove that fund matches its objective
No idea of what kind of risk the fund takes
No idea about the way the fund is managed or the kind of returns it has delivered

In short, in existing funds you know if it is good fund or not where as in an NFO that is not available.

All good funds today were once NFOs but so were the bad ones. Atleast today you can say what are the good ones and what are the bad ones. This you cant do with an NFO. There have been many one hit wonders, which have soared in one year and totally diappeared in another. Whereas there have been funds that have been consistant above average performers every year. These funds also have the highest 3 yr 5 yr and 10 yr returns. It would be better going for a fund with such a track record.

Your friend was very lucky to have invested in Kotak Opputunities during NFO. It turned out to be a good fund. But that cannot be said of all other funds. I am not sure if it is ok to decide investments on the basis of luck while investing in a high risk instrument like equity.

 

[shah_rishi]

Re: Comment on recent NFO's

Thanks for your reply vicky....guess ya it makes sense what ur saying.

are you an investor yourself?

my first investment into a MF is exactly one month back into kotak infra and realty fund....and its already given me 8.5% growth which is fantastic and hope it keep growing at the same rate

if you are monitoring kotak opp fund, would you invest in it now?

although I've read on here that its not good to have funds in the same company but kotak seems safe to invest in...advice?

Thanks
rishi

 

[Vicky78]

Re: Comment on recent NFO's

Kotak Oppurtunities is an aggressive opputunistic fund which wil move in and out of different market cap

As a fund house there are better fund houses than Kotak.

In my personal opinion (based on my googling skills ) for equities DSP ML is the best. Followed by SBI Magnum, Frankilin templeton, Reliance, Birla sunlife.

Most experts in personal fn, valueresearchonline, citibank rate HDFC as one of best Amc in the country but i am not sure why. HDFC's debt funds are very good though. I dont like thier equity funds.

http://www.traderji.com/mutual-funds-discussion-forum/17603-new-investor-help-please.html

Happy Investing

 

[deepakraam]

Re: Comment on recent NFO's

Could anyone please say the Prospects of the recent NFO's in the Market Viz.

1)Kotak Indo World Infrastructure,
2)Franklin Asian Equity Fund,
3)LIC MF Top 100 and
4)Sundaram BNP paribas Energy Opportunities Fund??

I guess Sundaram BNP Energy fund is a good one.They invest aggressively in the Middle-East countries.It mostly resembles reliance diversified power fund but sundaram energy fund invests in only energy companies.So expecting it to do good.


-Deepak.

 

[sskartiksharma]

Re: Comment on recent NFO's

First of all Vicky,
Thanks for your info and take my word,It really made sense.
But I was not able to resist myself from investing in Sundaram Energy Fund which I thought would be a Fair deal considering it's investments in the Energy Sector.
Anyway, Thank You.

 

[Vicky78]

Re: Comment on recent NFO's

Welcome to the club. That happens, nothing new. All of us make that mistake given the amount of misguidance by distributors like bajaj capital.

 

[reufra]

Re: Comment on recent NFO's

Good are bad these new NFO's have received tremendous response!!!.I read in an article that for the first time in the history of indian mutual funds,the newly launched ones like Sundaram and UTI (Sectoral) have already collected 5000 crores during the NFO period.Normally it would this amount would take some years.

This is a clear indication that these funds have crated a great hype among the general public.Only time has to tell how these funds would really peform!!!

 

[sskartiksharma]

Re: Comment on recent NFO's

That's true to some extent.
The Burgeoning Growth of the Indian Middle Class is Driving the MF Market Growth which People think are safer compared to equity shares and are decently Profitable.
It is definetely interesting to see how these sectoral Funds Perform in the Near Future.

 

[rahulc79]

Exit load query

Hello Gurus,
I hv noticed is that some of the MFs say "Exit Load : NIL, An early exit charge equivalent to the unamortized NFO expenses will be recovered from the investor in case of redemption before locking period.". Can anyone make me understand how much exit load will be deducted if i exit after one year.

Regards,
Rahul

 

[ankitrastogi82]

NFO or Already Running

Hi,
I am new to this forum and like to know the views of experts here on my following queries.

- What is good to take NFO or already running MF ?
The idea here is if I take NFO @ 10/- I will get MORE no of units as compared to already running. Say Already running MF's as per the past records gives 65% returns annually and the NFO speculates 65% returns annulay based on other funds in its family.

- Will my earnings after a year will differ if i take NFO or Already running ?
- Will the number of units allocated matters to count returns ?

Hope I am clear with my questions and queries.

Waiting for your expert views and suggestions.

Anky.