New Delhi, Aug. 3 -- A New Fund Offer (NFO) is the first-time subscription window through which a mutual fund house launches a new scheme, similar to an Initial Public Offering (IPO) for stocks.

While NFOs often attract investors because of their Rs.10 launch price, experts say the offer price alone should never influence an investment decision.

When a similar fund with a proven track record already exists in the market, investors should ask whether the NFO offers any real advantage. Here's what experts have to say about whether investing in such an NFO is worth it.

Nilesh D. Naik, Head of Mutual Funds at PhonePe, says investors should generally avoid NFOs that belong to an existing mutual fund category but do not offer anything meanin...