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In general, the higher the potential return, the higher the risk of potential loss also.
Although some funds are less risky than others, all funds have some level of risk –
it’s never possible to diversify away all risk also Class 3 Paper Set 5000 MCQ Book
even with so-called money market funds This is a fact for all investments. Each mutual fund has a predetermined investment objective that tailors the fund’s assets also regions of investments and investment strategies. At the most basic level, Royal Career Academy Gandhinagar, there are three flavours of mutual funds also
those that invest in stocks (equity funds) also those that invest in bonds (fixed-income funds),
Those that invest in both stocks and bonds (balanced funds), And those that seek the risk-free rate
(money market funds) also.
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