Mutual Fund Sahi Hai

Understanding risk in mutual funds

Find out how the different categories of equity funds and debt funds fare on a riskometer

Understanding risk in mutual funds

dhanak हिंदी में भी पढ़ें read-in-hindi

Risk is an unavoidable part of investing. While different investments may fall on different points across the risk spectrum, there is hardly any investment that's entirely risk-free. Mutual funds also carry risk. But first, what is 'risk' exactly? In the world of investing, risk is the other name for volatility or fluctuation in price. An investment that is susceptible to wild swings in either direction is considered to be highly risky. Both equity funds and debt funds carry risk, but debt funds are generally not as risky as equity funds. Equity tends to be volatile, especially in the short to medium term.


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