Individuals invest in making a profit.
But no investment comes without risk.
While mutual funds offer greater diversification and value for money to one person, there are a few risks associated with investing in mutual funds.
We look at some of those risks.
The risk arises in mutual funds because of the reason mutual funds invest in a variety of financial instruments such as equities, debt, corporate bonds, government securities and much more.
Prices for these instruments continue to fluctuate due to many factors that can cause losses.
It is therefore crucial to identify the risk profile and invest in the most appropriate fund.
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