I wish to invest in a mutual fund that offers assured returns and guarantees capital protection with no risk of loss. Please suggest a suitable fund
– Rohit Rai
One often hears a fast paced disclaimer when a mutual fund is advertised on radio or television. The fine print of every mutual fund document runs the caveat that mutual funds are subject to market risks. Considering mutual funds have investments in stocks and bonds, which are not risk free, investing in mutual funds is not risk free. The degree of risk can vary from being low to high. But there is no such thing as risk free mutual funds.
If you understand and can bear little risk; you can consider monthly income plans from mutual funds. However, these too do not guarantee monthly dividends. For assured returns with capital protection you will be better of considering bank fixed deposits.
This article was originally published on January 06, 2011.
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