Should I Invest in an NFO? Why I Usually Don’t Fall for the Hype
Every few months, a New Fund Offer (NFO) comes knocking — packaged with buzzwords, glossy brochures and a convincing pitch from your mutual fund app or distributor. “Limited window.” “First-mover advantage.” “Thematic opportunity.” It all sounds exciting. A total of 176 NFOs were launched in FY24 amassing an amount of ₹63,538 crore In the fiscal year 2024 with significant contributions from major players, indicates investor trust and various market approaches.(source Upstox) Top five fund houses for FY2024: Source: Value Research But here’s my honest take: I rarely invest in NFOs. And I’ll explain why — with some real 2024 NFO examples to back it up. 🚨 1. NFOs Come with Buzz — and Built-In Costs Let’s start with something most investors overlook: the cost of an NFO is often higher in the early years. Why? Because mutual fund houses spend a lot during the launch phase — marketing campaigns, distributor commissions, roadshows and promotions. And where does that...