Many people believe that investing in a new fund would be more profitable than investing in old funds. The reason, as they say, is that the new fund would be issued at a price lesser than old funds in similar category and therefore the percentage increase one could expect in the fund growth would be more. This is one of the biggest myth in mutual fund investments.
The point to note is, NAV is not an indicator of the potential of fund. In fact a fund with good track history is more likely to yield better returns with adjusted risk-return, than the tumultuous new fund in the market.
Read our article on diversifying your investments in mutual funds -
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