What risks are associated with NFO Investment?
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NFO Investment carries certain risks, including the lack of a track record to evaluate the fund's performance. Unlike established mutual funds, NFOs do not have historical data for analysis, making it harder to predict returns. The success of an NFO depends on the fund manager’s expertise and the AMC's ability to execute the strategy effectively. Market volatility can also impact NFO investments, especially if they are launched during uncertain economic conditions. It is crucial to assess the fund's objectives and ensure they align with your financial goals and risk appetite before committing to NFO investments.