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As a Financial Adviser it is your responsibility to make a proper Asset Allocation of investment for an investor. If you feel that the NFO is right, the customer has the requirement of that sort & his risk appetite permits, invest his money in that particular NFO, AMC''''s give high paybacks, tempt IFA''s with other offers like foreign trips / holiday package as done in the past years on such NFO''''s to promote the New Fund. They blow their trumpet. You have to be on your own. Such paybacks spoiled the industry in the past years. The history is repeating. A fund has to be sold on its merrit & not on paybacks. Trail only model for commissions will build a REALLY strong Industry base. It is also TRUE that unless you yourself & others invest we will not come to know the strength of the NFO. I have more or less reproduced my earlier response with some more words & corrected certain grammatical mistakes. Pardon me for the mistakes done in my previous comment.

Dear choice is yours.Our duty as a financial advisor to clear the matter to our clients.

SEBI is hand in glove with this game by AMCs, as per past ccassions, some times with large AMCs and some time for all AMCs. It is not worried, rather never cared for true growth of investor wealth and always overlooked their safety, permitted very high commission though spread over years and within norms. Probably some vie for Padma Bhushan as last resort of achievement after retirement and when new assignment is given to them.

Dear Friends currently almost some AMCs are on the way to grow their AUM through new fund offers (NFO) with close ended schemes in past icici amc close ended fund giving excellent return Rs,10000/-is almost Rs, 25600/- launching date of 26/09/2009.past expriienc is good because fund manager know that this fund not redimm before three years or five years.but choice is our client stay with period of three to five years nothing rong with close ended fund.second thing is that we are also elss holding period of three years.(lokin period).client also stay with this fund. with regards, sunil k shah,nj fundz,ahmedabad mo no 8735933970

I endorse the views expressed by Mr Deepak R Khemani.

you have to understand market sentiments. when our economy is going to grow in next 3/4 years, investors can look forward for the growth. one can be selective for NFO.

I am agreed with Mr Deepak Khemani You can''t stop any Amc for launching new NFO. If you are not interested kindly ignore it.

Abbasali An NFO is one of the ways for the AMC to gather AUM,it is also a way of bringing new Investors into the MF fold. Asking whether it is right or wrong is also wrong. If you do not like it simply ignore it, if you like it ask your investors to participate in it. Asking an AMC not to come out with NFO''s is like asking a car manufacturer not to come out with newer car models since existing ones are selling, or asking a toothpaste manufacturer not to come out with different variants of their toothpaste which are already available. There can be at least a thousand more examples here so You need to take a balanced view. If you have had a very bad view simply avoid.