World's Fastest running ads says what ?? Risky Metah

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Mutual funds


    Mutual funds are institutions that pool funds from the people and invest in various asset classes mitigating risk maintaining a portfolio returning as much as possible having a threshold for risk. Mutual funds aren't risky, but the asset in which the funds are invested is.
Quint
Mutual funds try to build a portfolio that is recession-proof or reducing the downside of the fund. The ads which run errands on every interval, say that the risk of the fund is borne by you because you chose them for the whitened smile returns.

    The upside is appreciated, but the downside cannot be predicted similar to the former. No investment is risk-free because you are paid for the risk your shoulder carries. You bear the pain for the gain. The lesser the risk, the lesser is the reward, but vise versa isn't always true. Whenever you dig for gold, it's not assured that every stroke fetches gold, but you still lose energy. If the risk is higher the investor should also confirm to the brighter side too, but that's complex for an amateur or an immediate investor and the major reason could be a lack of information and detoured contacts. 

    Similarly, mutual funds dig for gold, but they make sure the majority of the strikes, they flip glitters.

Market risks are inherent risks associated with any type of investment that is a market derivative. The risk is the possibility of the market bottoming down experiencing a recession. For example, in 1992 the Harshad Metah scam. Neither company altered its style of operation nor underwent a major restructuring. But the market fell deep to 2200 from 4500 points led by Metah.

Quora
He began the bull race with crores of the fund and every retail investor profited from a 4500 point hit. While the Government was clueless regarding the stimulus and unaware of the coup. Once in the spotlight, the gradual decline was irresistible.

Unlike individual purchases, the selected fund always follows diversification that mitigates risk and maximizes performance. However, the portfolio also suffers from equity risk if the entire sector is going below the paper where the possibility is less compared to direct purchase by retail investors.

The money market or fixed investment vehicles, failing of the bond, interest rate fluctuations are the losses you might incur due to incorrect trade decisions.

Every investment involves risk. No investment is free of risk, even bank defaults when you invest in FDs. Market timing with no financial discipline is fooling yourself. No worries, the next content will be on how to buy mutual funds and what all are the parameters you will overlook while choosing one.


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