NFO - coming from nowhere!!! - How a financial planner / advisor keep track of all MF

[jaibeer]

Just check below ling guys, I see everyday at least 5 NFOs coming up.
How can a financial advisor keep track of all of them?
MF industry is in mess and the top of all all these new fund offer are confusing planners as well as individual investors.
http://www.amfiindia.com/nfo.aspx

I want to know a good financial planner how does he keeps track of all MFs (including NFOs)? What is criteria one should look after when choosing a MF from a jungle of funds, exp ratio, turnover ratio, returns, sharpe etc?

cheers
Jai

 

[yodlee99]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

I tell my friends to avoid NFOs and invest in time-tested funds that are performing very well in a upswing and falls less in a downswing market. From my understanding of SEBI's intentions, there are too many funds already available.

Some of the funds are put by AMCs just because their peer AMC is doing so and they want to show an increasing trend in the funds collected (AUM), every quarter. This has resulted in a market with too many funds (3000+ as of today). This and many such short-sighted effort on the part of AMCs has made SEBI sit up. The result is a ban on entry load to prevent mis-selling and there are back-door efforts to club some funds together going on now. You will hear about them soon, i think.

Does a full-time financial planner have to advice his clients to invest in NFOs? Why can't they be told the right thing to do ie., avoiding the NFOs altogether ?

 

[jaibeer]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

Thanks yodlee99.
I would feel much relieved if all the similar objectives funds get clubbed under one AMC, as this does not make any sense.
Most of the fund under the same house have same underlying.

I would further want to know how will you choose the best one suitable for my client among the time-tested MFs, as there still many lions in this jungle.

cheers
Jai

 

[vishal412]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

Well, the best way to choose your Mutual Fund investment venue is based on,

Consistency of Fund.

Mutual Funds Track record

Reputation of Fund house and Fund Manager.

In a nut shell, You must select funds with a consistent performance track record, which is a function of the sound investment processes and systems followed by the fund house.

 

[jaibeer]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

Well, the best way to choose your Mutual Fund investment venue is based on,

Consistency of Fund.

Mutual Funds Track record

Reputation of Fund house and Fund Manager.

In a nut shell, You must select funds with a consistent performance track record, which is a function of the sound investment processes and systems followed by the fund house.

What are your criterias to verify reputation of fund house and fund manager?
I mean for MF we have so many information but all this talk about the verification of Management and fund house, how will you determine?
HDFC fund house is good as one of their MF is HDFC 200, however recently HDFC's employee was involved in front-running case.
How would you describe this?
:annoyed:

 

[vishal412]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

What are your criterias to verify reputation of fund house and fund manager?
I mean for MF we have so many information but all this talk about the verification of Management and fund house, how will you determine?
HDFC fund house is good as one of their MF is HDFC 200, however recently HDFC's employee was involved in front-running case.
How would you describe this?
:annoyed:

My criteria to verify reputations of Fund house and Fund Manager will be their past record, what was their performance in past, investment processes of Fund house, and systems that Fund house follows.

HDFC Front running case was a shock for people like us who have trusted this brand since 1980 as a shareholder, as a fixed deposit holder, bank account holder, demat account holder, fixed deposit holder, brokerage account holder, as a mutual fund unit holder, as a life insurance policy holder,.this is quite a hit.
Hopefully the HDFC management will improve the internal controls , thats what i can say at this point of time.

 

[jaibeer]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

My criteria to verify reputations of Fund house and Fund Manager will be their past record, what was their performance in past, investment processes of Fund house, and systems that Fund house follows.

HDFC Front running case was a shock for people like us who have trusted this brand since 1980 as a shareholder, as a fixed deposit holder, bank account holder, demat account holder, fixed deposit holder, brokerage account holder, as a mutual fund unit holder, as a life insurance policy holder,.this is quite a hit.
Hopefully the HDFC management will improve the internal controls , thats what i can say at this point of time.

you are right man. But to be honest checking and comapring fund house history is fine but to the professional extent of fund managers and their past records is only on paper.
One cannot do it practically

 

[vishal412]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

Well, yeah you are right,but at least we should track record of fund manager on paper, and also thoroughly should search for the fund managers reviews what the popular mutual funds recommendation service providers says about the fund manager and Fund house. Personally i follow PersonaFN's advice on Fund house and Fund Manager, that helps me in taking my decision on investments.

 

[jaibeer]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

Well, yeah you are right,but at least we should track record of fund manager on paper, and also thoroughly should search for the fund managers reviews what the popular mutual funds recommendation service providers says about the fund manager and Fund house. Personally i follow PersonaFN's advice on Fund house and Fund Manager, that helps me in taking my decision on investments.

Well thats good Vishal.
Thanks I will check PersonalFN.
Thanks pal.:thumb:

 

[surfingminds]

Re: NFO - coming from nowhere!!! - How a financial planner / advisor keep track of al

We should not worry about it their are so many AMC and each AMC has similar categories of fund sometimes they launch new fund just to attract new investors but in future once all are aware of such tactics their will be less funds to offer also i feel atleast the similar kind of schemes should be merged within one AMC still i find many funds from AMC to offer with different style but i am sure its managed at the end in same ways only with minor difference after all if they perform no one cares about the style and all seem to follow same stocks or approach