Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Hemant

Hemant Bokil  | Answer  |Ask -

Financial Planner - Answered on Feb 15, 2023

Hemant Bokil is the founder of Sanay Investments. He has over 15 years of experience in the field of mutual funds and insurance.Besides working as a financial planner, he also hosts workshops to create financial awareness. He holds an MCom from Mumbai University.... more
Nitiksha Question by Nitiksha on Feb 14, 2023Hindi
Listen
Money

What is the risk of investing in Mutual Funds?

Ans: Hi Nitishka , Risk Can be defined as your response to tolerance level. So its subjective and what's risky for me many not be risky for you. So in Mutual Funds specially wherever you will see equity as a component, you will see that much part of the portfolio as RED or GREEN depending on equity market performance. But more te equity in the portfolio more is the possibility of good gains and vice versa. So All in all i can say when you are driving your car on the road you drive it with safety and not with the intention of meeting with an accident. So in mutual funds too risk is there in the form of equity to create possibility of better returns and fund house takes care as to not spoil the party by choosing wrong equity as they have their own set of rules to assess the stock selection.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Listen
Money
How do Mutual Funds help manage risk
Ans: Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, or other assets. Here's how mutual funds help manage risk:
1. Diversification: Mutual funds invest in a diversified portfolio of securities across different asset classes, sectors, industries, and geographic regions. Diversification helps spread risk and reduces the impact of adverse events affecting a single security or sector on the overall portfolio.
2. Professional Management: Mutual funds are managed by experienced fund managers who conduct thorough research, analysis, and investment selection based on market conditions, economic outlook, and investment objectives. Fund managers make informed decisions to optimize returns while managing risks effectively.
3. Risk Assessment and Management: Fund managers assess various types of risks such as market risk, credit risk, liquidity risk, and interest rate risk associated with the securities in the portfolio. They employ risk management techniques such as asset allocation, security selection, and hedging strategies to mitigate risks and protect investors' capital.
4. Asset Allocation: Mutual funds allocate investments across different asset classes such as equities, fixed income securities, and cash equivalents based on the fund's investment objective and risk profile. Asset allocation helps balance risk and return potential, depending on investors' goals, time horizon, and risk tolerance.
5. Regulatory Oversight: Mutual funds are regulated by regulatory authorities such as the Securities and Exchange Board of India (SEBI) in India. Regulatory oversight ensures that mutual funds adhere to regulatory guidelines, disclose relevant information to investors, and operate in a transparent and accountable manner, enhancing investor protection and confidence.
6. Transparency and Liquidity: Mutual funds provide transparency regarding their portfolio holdings, investment strategy, and performance through regular disclosures and reports. Additionally, mutual funds offer liquidity, allowing investors to buy or sell fund units at prevailing net asset values (NAVs) based on the fund's liquidity terms and redemption process.
By offering diversification, professional management, risk assessment, regulatory oversight, and transparency, mutual funds help investors manage risk effectively while seeking to achieve their financial goals over the long term.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner
www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
Listen
Career
Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x