How different are mutual funds from other investment avenues?
In case of other investment avenues such as fixed deposits, post office savings, PPF you’re almost certain about the amount you would be receiving on maturity. The risk is low and you receive returns accordingly. But with mutual funds the returns are not assured since they are linked to the stock market. Stock market investments would mean taking on high risk. But since mutual funds spread the risk among several investors like you, individually you would take on low risk and rake in stock market related returns.
