Born on pessimism,
Grow on scepticism,
Mature on optimism and
Die on euphoria.
It is during this euphoric times you see hell a lot of Share IPO's and New Fund offers. When the going is good, investors also flock to these investments - be it Reliance Power Share IPO or Infrastructure funds NFO's from various Mutual Fund companies. Unfortunately, it is more like Make Hay when the Sunshines. While many may think that only few, 2nd rated company are involved in this, the list below would say all top guns are into such acts. It is sad.
NFO's are always made at Rs.10 notional NAV. If the NAV of a fund falls below the notional Rs.10, the premise is that the book value ( or proportionate value of shares held in the fund) has shrunk due to the market volatality.
Share Prices being visible many investors would be aware of their current investment status. But in Mutual fund, informations are not that visible. Not only these NFO's launched on 'AUM' target drive, deliver negative retuns, many big investors have already booked their profits/loss out of these funds and moved out. With prospects of appreciation being meager, there is no fresh inflow also. It is high time investors look into their portfolio and make an appropriate decision to make up for the loss. Otherwise they may be left behind - lonely.
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