In recent past we have seen many NFO's because some infra themes were not there so one needs to add one. but in past 1 year so many big and some small fund houses/ mutual funds have started business of asset gathering, everyone are in league of becoming the 1st prize winner, they are in race. some of them feel NFOs are growth engines to build their assets and profits.
What happens when you have more and more schemes?
what happen in recent time - all people associated with mutual funds get more incentives as new offer comes in, fund houses can spare more money as fund sizes are small initially.
some of the fund houses / mutual funds have similar schemes in their portfolio but they are still not merging it because everyone earns more on small funds. in this race of earning or making company big, who suffers is investor.
one should search a good advisor, good advisor means - he or she should be working in your interest only not in companies favour. search for unbiased financial advisor, ask him to show his/her investment portfolio or how much sip he or she is doing ?
we come across people who never did a single sip or never invested in mutual funds and advising clients for investing in mutual funds.
let us understand that amcs are manufacturers, they will produce what is demanded in market, i do not see any harm in it as long as their core funds do not suffer.
so, one should hire a financial advisor who works in your favour and gives unbiased advise to you. what is wrong if someone charges fees to you for advising the right way ? its advisable to pay fees rather than suffering whole life with bad fund selection.
think over it..........