Mutual Fund investments are exposed to market dangers, as we have all heard. Have you ever pondered what the hazards are?
The left-hand picture describes the several categories of dangers.
Not all risks have an effect on every fund plan. The Plan Information Document (SID) provides information on the risks associated with the scheme you have chosen.
So how does the management team for the fund handle these risks?
What kind of investments the Mutual Fund has made will determine everything. Some securities are more vulnerable to specific hazards than others, and vice versa.
Diversification, expert assistance, and SEBI restrictions all reduce risks in mutual funds.
The final and most significant query from investors is: "Can a Mutual Fund business run off with my money?" Given the structure of mutual funds and the stringent restrictions, this is just not viable.