Dear Sir Ji - Please advise whether investing in NFOs is better than existing Mutual Funds. Thank you.

Ans: When choosing between mutual fund NFOs like Canara Robeco Manufacturing Fund and Edelweiss Technology Fund, it's essential to consider various factors such as your investment goals, risk tolerance, and portfolio diversification.

Canara Robeco Manufacturing Fund: This fund focuses on investing in companies operating in the manufacturing sector. It aims to capitalize on the growth potential of manufacturing companies and may be suitable if you're bullish on the manufacturing sector's prospects. However, it's essential to assess the fund's investment strategy, track record, and the outlook for the manufacturing sector before investing.
Edelweiss Technology Fund: This fund focuses on investing in technology-related companies, which may include IT services, software, hardware, and internet companies. It aims to benefit from the growth potential of the technology sector, which has been experiencing rapid innovation and expansion. If you believe in the long-term growth prospects of the technology sector, this fund may align well with your investment objectives.
Considering your existing investments in ELSS, index funds, and infrastructure funds, adding exposure to a specific sector like manufacturing or technology can provide additional diversification to your portfolio. However, it's essential to evaluate the concentration risk and ensure that the sectoral allocation complements your overall investment strategy.

Before investing in any NFO, thoroughly research the fund's objectives, investment strategy, fund manager's track record, and expense ratio. Additionally, consider consulting with a Certified Financial Planner to assess how the NFO fits into your overall investment portfolio and whether it aligns with your financial goals and risk profile.

Remember to stay focused on your long-term investment objectives and avoid making investment decisions solely based on short-term market trends or NFO hype. Diversification, thorough research, and disciplined investing are key to building a successful investment portfolio over time.

Ans: SBI Innovative Opportunities Fund
New Fund Offers (NFOs) are often untested.

They lack a performance history.

It's better to invest in funds with proven track records.

Existing Mutual Funds
SBI Multicap Fund:

Multicap funds are diversified.

They invest across market capitalizations.

This can be a good long-term investment.

SBI Nifty50 Equal Weight Index Fund:

Index funds mirror the market.

They lack active management.

Actively managed funds can offer better returns.

SBI Automotive Opportunities Fund:

Sectoral funds are risky.

They focus on specific sectors, increasing risk.

Diversified funds are safer and more stable.

Recommendations
Avoid thematic, sectoral, and index funds.

Choose actively managed diversified funds with a good track record.

They offer better risk management and potential returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in