Should I invest in the NFO Sundaram Services Fund?

In general is better to avoid NFOs due to the following reasons:

1. NFOs do not have a track record of history. It is difficult to see how they perform over a reasonable period of time.
2. They are pushed more with a marketing hype
3. Often a Rs 10 NAV is showcased to show it is cheaper to buy, but thats an optical illusion. The value of the fund is as good as the underlying stocks.
4. Often NFOs are pushed as close ended funds to garner higher commissions for the distributors.

So what do you do?

1. Go for open ended funds with good track record
2. Go for direct plan mutual funds as you save on commission
3. Go with a trusted advisor not someone who offers free platform or a free relationship that costs you much more in the long run!