Are mutual funds safe?
If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
- Arun Rai
Mutual funds do not guarantee any returns. All mutual funds have some amount of risk. However, the risk varies between different categories. For example, debt mutual funds are relatively less risky. Equity mutual funds have a higher risk element in them. Even within equity mutual funds, some categories are riskier than the others.
If you are new to mutual funds and do not understand much about investing in mutual funds, you must seek the help of a reliable mutual fund advisor near you. You can ask your friends and colleagues for reference. You should gain enough knowledge, experience and confidence before you can think of taking care of your investments on your own. We believe only investors with a very good knowledge about mutual funds and investing should consider investing directly.
You should always choose your mutual funds based on your goals, investment horizon and risk profile. Since you are investing for a long period, you may consider investing in equity mutual funds. However, you should choose mutual funds based on your risk profile.