Hi kanchan, IMO both shares and mutual fund investment involve risks. In fact investment in itself is a risky business.
Lowering the risk amount depends upon the choice of the funds. A prudent investor, confident with the ways of investments, may take greater risks than an amateur investor and can still make good profit.
Shares are considered as a more volatile form of investment. And investors with aggressive attitude towards the market prefer investing in the shares for quick gains. Moderate risk takers, however, prefer investing in Mutual funds and bonds.
Mutual funds allow the investor to invest in a collection of funds with varied degrees of risks, and thus minimizes the risks element in the investment. Also mutual fund investment has less lock in period. hence, gives you the option to reap the return of your investments quickely. _________________ Register Now to have your Insurance queries solved.
risk factor involved in shares and mutual funds? which of these is at lowest risk?
Mutual funds are obviously the safer form of investment. As the other poster has identified correctly, MFs are appropriate for investors, who are ready to take moderate to no risks. Also, non-investor, common people, prefer investing in mutual funds. _________________ Register Now to have your Insurance queries solved.
