NFO Review

POSTED BY Jig ON January 26, 2011 10:27 am COMMENTS (8)

I have long term horizon for Child Education. Is it good to invest in Fidelity Newly Launched NFO Childrens Education Plan??

Can any one give their view on Fund Manager Mr Nitin Bajaj??

Regards

Jig

 

8 replies on this article “NFO Review”

  1. Ramesh says:

    A relatively large exit load means it prevents you to remove money from this fund early, which actually is a Pro for such a “supposedly” long term goal.

    Also, answer is yes to the second question.

  2. jignesh says:

    Switching means the switch between education fund to marriage fund and vice versa . am I understand it correctly?

    Jig

  3. Ramesh says:

    My view about this particular plan:
    Pros:
    1. Probably the only plan which allows simple switches within the 3 options of the fund, akin to the seamless-switching available in Ulips. though you have to be savvy enough to know how to do that.
    2. Very good fund management house.
    3. Relatively large exit loads.

    cons:
    1. A new fund, without any past history.
    2. Even in future, it will be difficult to gauge its performance, because though the individual option may perform well, but the overall performance of the money of investor (because of switching) may greatly differ.

    Overall, this fund is good for all those people who can use switching, without getting into the complications of a Ulip

    Ramesh

    1. moneysights.com says:

      @Ramesh,

      We agree with you on this – “Overall, this fund is good for all those people who can use switching, without getting into the complications of a Ulip”. And as you mentioned, one needs to know how to do switching to derive benefits.

      Team moneysights.com

    2. jignesh says:

      Ramesh,

      “Pros: Relatively Large Exit load”

      What does it mean?

  4. First of all, one should not invest in NFO just it’s @Rs.10. It’s a myth. It’s better to invest in a fund with good track record even if it’s NAV is more than Rs.200 rather than new fund.

    Secondly, in education option, this fund will invest 70% in equities and rest 30% in debt. I don’t see taking defensive option for such a long term.

    So, it’s better to invest in existing fund with good track record and 100% equity. You can create wealth for your children.

    Hope it will help you.
    InvestmentKit.com

  5. jignesh says:

    Atul, that i already gone through.
    For choosing a product, i need view on new products available in market.
    Further the products are best today may not be same after one two or more years. new products can also take position of recent well known products. Its just my thought. Experts are requested to give their views on the same too.

    Thanks

  6. Atul says:

    Hi Jignesh,

    If there are existing MFs with good track record why you want to try hand on NFO.

    For child education there are various options.

    Refer the link in this forum which will be helpful

    “https://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html”

    Regards

    Atul

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