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Are investments in Mutual fund units risk free or safe?

April 26, 2017Free investments mutual fund risk safe units

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Are investments in Mutual fund units risk free or safe?

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It depends upon where the mutual fund invests depending upon objective of scheme. Mutual funds that invest in stock market related instruments cannot be termed as Risk Free or Safe as investments in equity shares are risky by nature. Mutual funds that invest in fixed income instruments (Debt funds) are relatively safe. Mutual funds that invest only in government securities (GIF funds) and liquid funds are the safest.