It is a common misconception that purchasing Mutual Funds with lower NAVs is a safe bet. For this very reason, people prefer to subscribe to New Fund Offers (NFOs) over investing in existing Mutual Funds. These assumptions might not always be accurate. Thus, it is ideal to check the quality of the Mutual Fund’s underlying investments, past performance and NAV of the fund before investing in it. Also, it is imperative to understand the Mutual Fund’s goal and investment strategy.