Are Mutual Funds Safe In A Crash?
If Stock Markets Crash - So Will Mutual Funds, Right?
Equity MFs are a way for you to invest in stocks, so the performance of the stock market will have a bearing on the performance of your investment.
The stock market will go up and down and so will the value of your equity mutual funds. But in the long run, investments in equities as an asset class provide inflation-beating returns.
Why MFs Are Safer: Avoid Making Bad Decisions
Unlike stocks where you invest based on your own knowledge, MFs are handled by fund managers with research teams - you get the benefit of their knowledge.
Why MFs Are Safer: Avoid Fraud
Since mutual funds are tightly regulated by SEBI, so there is little to no chance of losing your money to fraud.
MFs: A Safer Way To Invest
Mutual funds are, in the long-term, a safer way to invest, even with stock market volatility.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.