Investments in securities or mutual funds are not as secure as saving accounts because

2 answers:

4 0

The securities or mutual funds can fluctuate in value much more than the interest rate on savings accounts plus the principal is protected for savings accounts so it cannot be lost therefore for very conservative investors the savings account is safer.

olganol [36]2 years ago

3 0

Answer:

Investments in securities or mutual funds are not as secure as saving accounts because they are not fixed and the demand for the securities defines their price.

Explanation:

There are two main reasons for this answer. First of all, a savings account can be fixed on debt, interest, or nothing. However, it doesn't risk your capital because the integrity of the investment is backed by the institution, or if it is fixed to public debt, it is secured by the government. While securities and mutual funds don't use debt or only saving schemes to save money. They are translated into products that are sold under demand schemes that define their price based on how much people want them and the price they are willing to pay for them.

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