What Risks Should I Know When Investing in Mutual Funds via FYERS?
Investing in mutual funds through FYERS gives you access to professionally managed and diversified portfolios, but all mutual funds carry inherent risks. These risks arise from the underlying assets—such as equities, bonds, or money market instruments—each of which reacts differently to economic events and market conditions.
The overall risk of a mutual fund depends on its category. For instance:
- Equity funds tend to have higher market volatility and growth potential
- Debt and liquid funds typically carry lower risk and aim for stable returns
Key Types of Risks in Mutual Fund Investments
- Market risk: Losses due to broad market movements affecting equity and debt securities
- Credit risk: Risk of default by issuers of bonds in debt-oriented funds
- Interest rate risk: Debt fund values may fall if market interest rates rise
- Liquidity risk: Difficulty in selling or redeeming fund units during low demand or crises
- Concentration risk: Higher exposure and volatility from sector-specific or thematic funds
Always match a mutual fund’s risk profile with your financial goals, investment horizon, and risk tolerance. Review the scheme’s Riskometer and factsheet before investing via FYERS.
What If...
| Scenario | Explanation |
|---|
| You are worried about capital loss | Choose low-risk funds like liquid or short-term debt schemes. |
| Markets are volatile | Diversified or balanced funds can help reduce exposure to market swings. |
| You want predictable returns | Consider debt or hybrid fixed-income funds with low NAV fluctuations. |
| You're new to investing | Start with conservative or SIP-based strategies to manage market entry risk. |
Last updated: 12 Sep 2025
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