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Yes they are. Since mutual funds invest in the Stock Market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.

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Q: Is the investment of mutual funds risky?
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Related questions

Should you invest in Indian mutual funds at present?

Mutual fund investment is always risky. Read the terms and conditions very well before investment.


What is Contra funds?

Contra Funds are Mutual Funds that usually take a contrasting approach to investment when compared to regular mutual funds. They are usually extremely risky and may outperform the markets at times and may cause severe losses too.


How do no load mutual funds work?

No load mutual funds are mutual funds that are sold directly by the investment company instead of by an investment broker. They work exactly the same as regular mutual funds.


What is a mutual fund Is it a safe investment?

A mutual fund is when a company takes money from many investor's and pools it together to invest in stocks, bonds and other assests. Mutual Funds can be risky because they are not insured by the FDIC.


Are mutual funds an investment or saving?

for GDP an investment is saving.


How do you choose a mutual fund?

A mutual fund is an investment vehicle with a well defined, easy to understand investment strategy and goals. People choose mutual funds that match their own financial goals in a diversified way. In many cases it is possible to match individuals investment goals with just one mutual fund. In other cases, people use several mutual funds. If many funds are bought, none of the funds is usually a strategy match by itself. It is the synergy of the funds that makes the trick. Mutual funds range by the security type: there are bond funds that invest in bonds, stock funds that invest in stock and blend funds that invest in both in a pre-determined proportion. Of these, bond funds are less risky and stock funds are most risky. At the same time, historically stock funds offer more attractive return figures. Therefore one needs to establish a financial strategy first. A financial strategy varies with goals, time-frames of investments. Balancing risk and return is key to achieve investment goals faster. Only after the strategy is established one selects appropriate mutual fund or funds.


How many different investment programs are offered by Blackrock mutual funds?

There are three investment programs offered by Blackrock Mutual Funds. They offer the College Advantage program and the Mutual Funds program and the Retirement savings program.


Do shareholders own mutual funds?

Although mutual funds are usually initiated and often indirectly managed by investment companies, shareholders own the funds


Are bonds the same as mutual funds?

No, bonds and mutual funds are different types of investment tools. Mutual funds are made up of a variety of stocks, while bonds are not made up of stocks.


Why are they called mutual funds?

Mutual funds are called mutual because a large number of investors' provided money to form a pool to be managed by knowledgeable investment professionals.


Do major banks offer mutual funds?

Mutual funds are a type of investment that is generally available through all major banks. Mutual funds are an easy way to gain diversity in your stock portfolio.


Why should you invest in the mutual fund when you can directly invest in the same instrument?

As all the other instruments in equity and debts even mutual funds carry risk, but mutual funds are considered a better option because ,you investments will be managed by the professional managers who are in the better positions and they can spread your investment across various sectors around the market .Thus we can say that mutual funds are best option of investment in which few mutual funds like reliance mutual funds and DSP mutual funds are good players in the market .