Mutual Funds – Understanding risk profile
Mutual funds are collective investment schemes that pool investors' money and invest the assets in a diversified portfolio of stocks, bonds, or other securities. The mutual fund's investment portfolio is managed by a professional fund manager who hedges against uncertainties and navigates the market to maximize returns.
Mutual funds come in distinct options that cater to each individual investor's risk appetite, financial objectives, and financial positions. Mutual funds make up a diversified investment product that allows retail investors to gain exposure to different asset classes that may have otherwise been unavailable.
When you invest in a mutual fund, you buy units, and the money is pooled with that of other investors. The collected money is then invested in a mix of assets, wh...