Topic: How risky is your mutual fund?

nvestors always judge a fund by the return it gives, never by the risk it took.

In any historical analysis of a mutual fund, the return is remembered but the risk is quickly forgotten.

So a fund manager may have used very high-risk strategies (that are bound to fail disastrously in the long run), hoping that his wins will be remembered (as they often are), but the risk he took will soon be forgotten.

Most probably mutual funds value depend upon the market value so if you are looking forward to get a fixed income then I think fixed deposit is the best choice.

The definition of risk is actually derived from the tenure of your investments. If you are ready to give your investments a good 10 year investment horizon (just the way you do for PPF), then the risk is negligible. However, if you are having a short term horizon, then the risks are high as the markets are very volatile in the short run.

Regards
BFA

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