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Are investments in mutual fund units risk-free or safe?

April 26, 2017investments mutual fund risk-free safe units

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Are investments in mutual fund units risk-free or safe?

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This depends on the underlying instrument that a mutual fund invests in, based on its investment objectives. Mutual funds that invest in stock market-related instruments cannot be termed risk-free or safe as investment in shares are inherently risky by nature, whereas funds that invest in fixed-income instruments are relatively safe and those that invest only in government securities are the safest.