The risk involved in Mutual Fund Investment π
β’ Equity Risk
β’ Credit Hazard
β’ Risk of Interest Rates
β’ Risk of Inflation
Let's discuss them in detail. ‡
β’ Equity Risk
β’ Credit Hazard
β’ Risk of Interest Rates
β’ Risk of Inflation
Let's discuss them in detail. ‡
1οΈβ£Equity Risk
The money you put into an equity investment is eventually invested in the equities of publicly traded firms. Thus, equity SIP investment plan mutual funds, or any fund having a portion of its assets invested in stocks, are exposed to the hazards of stock markets.
The money you put into an equity investment is eventually invested in the equities of publicly traded firms. Thus, equity SIP investment plan mutual funds, or any fund having a portion of its assets invested in stocks, are exposed to the hazards of stock markets.
2οΈβ£Credit Hazard
When a borrower or issuer takes out a loan, they commit to returning the principal and interest on the agreed-upon time. The absence of this creates a credit hazard.
When a borrower or issuer takes out a loan, they commit to returning the principal and interest on the agreed-upon time. The absence of this creates a credit hazard.
3οΈβ£Risk of Interest Rates
The link between the rate of interest and bond rates is inverse. As a result, as the economy's interest rates rise, the values of current bonds fall because they continue offering the same interest rates.
The link between the rate of interest and bond rates is inverse. As a result, as the economy's interest rates rise, the values of current bonds fall because they continue offering the same interest rates.
4οΈβ£Risk of Inflation
Inflation is defined as an increase in the overall quantity of pricing for the products and services we use. It reduces the budget's buying power.
Inflation is defined as an increase in the overall quantity of pricing for the products and services we use. It reduces the budget's buying power.
Find out more about mutual fund-related risks on:
blog.finology.in
blog.finology.in
Loading suggestions...