Wednesday, April 2, 2008

NFOs are not bad

In the 9 April 2008 issue of the Outlook Money magazine, the article "Why have NFOs lost their lustre"? made interesting reading. However I beg with the author with some issues. Avoiding all NFOs would not be a very wise thing to do. You have to invest in some NFOs which are exceptions to the existing schemes like DSPML World Gold Fund, Lotus Agile Fund, etc and exotic funds like JM Core 11, especially if they are Close-ended funds because you may not be able to invest in the fund for another 3 years.
Also, the author says that some fund houses give even upto 8.5 percent commission to distributors. I myself being a distributor have never come any fund house giving even 5%!!!! He should be careful before writing such non factual informations. And for ongoing schemes I get only 2%.

Thanking you,
Srikanth Matrubai

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