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Dear Readers

Greetings from myinvestmentideas.com.

I am getting several emails asking for investment advices on Suresh@myinvestmentideas.com. While I would be responding them individually, these would not reach other readers. I am getting questions from people which are general in nature and I am trying to answer the same questions to several investors. To avoid this, I am taking new initiative which would help readers. This is “Suggest a topic” option on the menu bar. If you have any topic which is not covered here, you can leave a comment with little detailed description on what you are looking for which you could not find on this website. I would start publishing the articles based on these topics as early as possible.

Thanks Manju Fernandes from Dubai who is asking for NRI investment advices and Ravi Gupta who is asking to write about best demat accounts in terms of low charges. I am starting this topic with these two.

Regards

Suresh
Best Investment Options in India @ myinvestmentideas.com

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977 comments

  • Bhushan Kubde

    Hi Suresh,

    I am Bhushan Kubde from Doha Qatar.

    I would like to suggest a topic What is NFO and Risk Involved in this. Also please include if NRI can invest in it.

    • Sandeep Patil

      Dear Bhushan,

      Below are some info 

      Why not to invest in New Fund Offer(NFO)?

      Since NFO’s are opportunistic in nature, many investment advisers and financial planners suggest to stay away from these funds. So, is it really risky to invest into NFO? Let’s find out:-

      1. No proven track record

      Since NFO’s are launched with a new idea or a theme/sector it is very difficult to analyse the future of the fund. One can always find a similar kind of fund already running in the market which has a rating from the experts and where qualitative/quantitative analysis can be done on the basis of its past record, which cannot be done in case of NFO. 

      2. It is not cheaper than its other peer funds

      Many investor thinks that NFO’s are available at cheap price compared to other ongoing schemes, which is totally wrong. Suppose an investor invests Rs. 10,000 in an NFO at NAV of Rs.10 and invests the same amount into an ongoing scheme whose NAV is Rs.20. Now the growth of the NAV in both the schemes depends upon the kind of portfolio they holds. Here the percentage growth of the NAV is important rather than the value of NAV. So there is no point in investing in a fund which has a lower NAV.

      3. Comes with high initial expenses

      The marketing charges and other initial expenses are high in case of NFO’s. These expenses are capped to a certain percentage and are managed out of the NAV over the period and hence are responsible for the lesser return. So it’s better to avoid new funds as charges are high.

      4. Limited Diversification

      Generally NFO’s are sector specific (normally at the top of bull market) or have focus on certain category like Mid cap, small cap. People are advised to invest with a proper diversification because if one sector does not perform the returns are compensated by another sector and proper balance is maintained. So it is better to read the investment objective of the NFO before investing and avoid those which have limited scope of diversification. Your portfolio should be designed based on your goals…… 

       

      5. NFO are not exactly like IPO’s

      Many people are of the view that there is no difference between NFO and IPO which is not true. In NFO the NAV is fixed at Rs. 10 per unit and is not affected due to the demand or some other factors. While in IPO the listing price depends on the demand and expectation of the market with the company. So the price may fall or rise while listing. So please remember the growth of NAV in mutual funds only depends upon the growth of the underlying securities. 

      Please remember Mutual Fund companies launch different types of NFO to increase their AUM and to complete their bundle of products, to attract different kind of investors and to fulfill their needs. So this does not mean that every NFO will suit your profile. Sometimes a plain equity or balanced scheme will serve your purpose. So it’s better to avoid NFO and if required you can always check the performance of the other schemes already available in the market.

      If you want to invest then follow below thread which Suresh recently posted.

      https://myinvestmentideas.com/2016/09/top-10-best-sip-mutual-funds-to-invest-in-2017/

  • VENKAT

    Hi Suresh

    Your contribution to the investors is commendable.

    In view of changing Indian economic scenario (under various sectors),  you may consider to post one/two scrips in a month for short ro medium term investment as many investors will have less patience.

     

  • karthik

    Hi Suresh,

    Do post your inputs on investing in different etfs like niftybees,goldbees,bankbees 

    Thanks!! 

  • Bibin Antony

    Hello,

    I saw your post about wealth pack expense tracking application. Can you suggest a good application or website where we can record our investments. As we have multiple investments of different kind tenure and payout methods its getting difficult to track that. It must have all the options like mutual fund, stock, LIC, Bank FD, PO RD & NSC, Gold. Like that what ever investment a common man do. Due dates, payout dates etc will be added advantage.

    In one word my question is how can we track our multiple investments efficiently.

  • Ramakrisna

    Hi Suresh, I have come across this so called peer to peer lending, with some Indian platforms/websites coming up for the same. Can you please let me know your view on the same if it can be used as one of the investments for better returns, may be a small investement to start with. Thank You.

     

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