Mutual funds have been busy launching new schemes in either core categories or in the thematic funds, target maturity funds (TGF) or exchange traded funds.
Investors should consider NFO only if it offers exposure to an asset class which is not available through existing schemes. Ensure that the NFO investment helps achieve a financial goal. For example, a short term goal can be achieved by investing a lumpsum in a TGF that matures around the time your financial goal is due. Even if you invest in an NFO, keep a track of it in future. Check if the fund manager is walking the talk and track expenses of the scheme.
