what is risks involved in investing in Mutual Funds

Posted on 01-05-2016        By leena

what is  risks involved in investing in Mutual Funds?

Mutual Funds do not provide assured returns. Their returns are linked to
their performance. They invest in shares, debentures, bonds etc. All these
investments involve an element of risk. The unit value may vary depending
upon the performance of the company and if a company defaults in payment
of interest/principal on their debentures/bonds the performance of the fund
may get affected. Besides incase there is a sudden downturn in an industry
or the government comes up with new regulation which affects a particular
industry or company the fund can again be adversely affected. All these
factors influence the performance of Mutual Funds.

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