NFOs or Continuous Purchase

With Mutual Funds becoming perfect alternative for age old FDs, more people are buying Mutual Funds.
But now with several NFOs(new fund offers) coming in, which one should you go for NFOs or established funds with a track record. Though stocks and MFs have similarities they differ in IPOs and NFOs. In IPOs when the stock gets listed you can sell off on the opening days itself but not in NFOs since NAV of the new MF remains is at the price you bought. But I have seen most of personal finance experts advice going against NFOs. Whats your take? NFOs or Continuous Purchase??

Yesterday I was watching a show on DD-the analyst was recommending existing funds with good track record...

i agree with shrinidhi....don't rely on NFOs...problem is now the market is on a high...anything you invest in you will get profits atleast for the time being but...beware....its all not all tht rosy....so better stick to the golden rule....check the track record and then invest.....

More over NFOs usually have a lock in period of 3 years which Equity Diversified dont have. In case of NFOs, the first 3 years they will be close ended funds which after 3 years will be converted to open ended funds.

3 yrs lock in period is fine if we're getting tax benefit as in ELSS what u thing\k?

3 year lock in period is there for most NFOs, whether they are ELSS or Not. If the NFO is Equity diversified and not ELSS then the money invested will be locked for 3 years and no tax benefit will be there. For eg : HDFC Infrastructure Fund ( NFO closes 21st feb 2008) has 3 year lock in and no tax benefits whereas SBI Tax Advantage Fund series I (NFO closes Marvch 03,2008) has 3 year lock in and has tax benefits.

Is there tax benefit for partnership firm investing in mutual fund schemes