What are the risks involved in investing in mutual funds?
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Last Update hace 4 años
Mutual Funds are not a fixed-income investment, which simply means that returns are not guaranteed. Given that Mutual Funds are invested in stocks, if stock prices and overall market declines, then that would result in a loss for your investment.
One of the main benefits of investing in a Mutual Fund is that your invested amount is diversified to reduce the risk of large drawdowns. The performance of your investment would heavily depend on the time you invested and the chosen fund that you invested in.