Is investment in mutual fund safe?

#3
Is investment in mutual fund safe?
As an investor, we invest money with the primary objective of making positive returns through them. Mutual funds are one of the most popular investment vehicles across the globe. It is so very lucrative that it has the magnetic effect of luring more and more investors. Though mutual fund is considered as a safe way of investing for return, the underlying fact is that none of the mutual funds are safe though all mutual funds are safe.
 

js19

New Member
#4
Yes,Investment in Mutual Funds are a safe bet. Mutual Funds hold highly diversified portfolios,you can invest in Equity(more risk),Debt(less risk) and Hybrid Funds(mix of equity and debt). Another fact about mutual funds is,as it is open ended in nature,one can withdraw his/her amount at anytime. You just have to pay a small amount of fee called exit load when you pull out your money too early. This is different from investing in land or insurance where it’s difficult to pull out money so easily. Moreover,SEBI exercises close oversight over mutual funds.
 
#5
Indeed mutual funds are a safe and good option for investment . Though the mutual fund securities are subject to market risk(but so is every financial security), by selecting the right type of fund as per your requirement , one can maximize his gains in the long run. Investing in a mix of both equity and debt mutual funds are safer than most of other mutual funds as they have benefits of both equity and debt and neutralize the risk factor . So , investing in the right type of mutual fund is the most important thing.
 
#6
Yes mutual funds are safe. One should not even think twice before investing in a mutual fund. It is the safest and most valuable place to invest in at present. Mutual funds work on the method of compounding. The interest you get/earn on your principal amount gets added to your principal amount and interest in now calculated on the total amount.
 
#7
It is probably the best option to invest your money but there will always be the risk involved. You know what they says, the higher the risk is, the higher the return/loss will be. So, it is wise to see whichever type of fund is preferable to you.
 
#8
It is probably the best option to invest your money but there will always be the risk involved. You know what they says, the higher the risk is, the higher the return/loss will be. So, it is wise to see whichever type of fund is preferable to you.
Risk is present in every investment alternative. It depends on individual’s risk tolerance, financial goals and expectations.
 
#9
mutual funds are considered to be safe because of their diversified nature, which is a how a trader mostly prefers risk reduction. but the main issue is what type of mutual fund to chose. so yeah, mutual funds are safe, but if invested with proper knowledge and research.
 

niftyoption

Well-Known Member
#10
In investment avenues MF s are playing key role , and some risk reduction comparatively direct equity investment but our investment gains are mostly depend upon " MARKET LOW VALUE AREAS buying , or Market Growth Area Buying , profit booking areas , Quality stocks in portfolio , fund manager skill , Sector allocation , portfolio Diversification, Marco economic , Global conditions , Mutual fund liquidity flow , fund size, Tax structure and expenses ., and so many other reasons influence our investment in MF s

and main point is investor holding period and entry and exit areas are key players

but comparatively direct investment in equity , MF is giving some safety . but in equity high risk and high returns , in equity you may catch Multibagers but in MF multibaggers are very difficult

it is all depend up on our skill
 

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