Are NFOs Good for Short-Term Investments?
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Thinking about investing in an NFO for the short term? Here’s what you need to know about their suitability, risks, and potential returns.
Are NFOs Good for Short-Term Investments?
It depends. Not all NFOs are designed for short-term gains. Some funds, like thematic or sectoral NFOs, may offer short-term opportunities if they align with current market trends. However, most NFOs—especially diversified equity or debt funds—are structured for long-term growth.
Since NFOs don’t have a track record, investing in them for the short term carries higher uncertainty. Liquidity, exit loads, and market conditions also play a role. If you’re looking for quick returns, established mutual funds with a proven history might be a safer bet.
Before investing, always check the NFO’s investment strategy, risk factors, and lock-in periods to see if it fits your short-term goals.