Should investors subscribe to New Fund Offers (NFO) for the sake of investing? AMCs using strategic or theme-based marketing try to attract investors towards NFOs. Their objective is obviously to increase their business & funds corpus. However, there are existing equity-based schemes which have given consistent great returns over a longer period. Does it make sense to exist those for NFOs? The attention towards these old schemes diminishes due to the advent of new schemes every year. Just for records the AMCs launched 36 active & 30 passive schemes in 2023 and in 2022 there were a total of 149 NFOs. Too many options are always confusing. In my view one should only invest in NFO, if it is providing a theme which is missing in your portfolio or for diversification purpose only. This is again subject to due diligence of the NFO.

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