Question

High risk & low risk of mutual funds

Answer 1

Answer:

All funds carry some level of risk. With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.High-risk mutual funds refer to funds that have excellent potential and the ability to provide high returns. However, these funds are very volatile in nature and come with high risks.These high-risk mutual funds typically provide great dividends to an investor.Low risk Mutual Funds are an ideal financial vessel to preserve capital and increase income through timely liquid investments. It can be used as an alternative source of income. Prospective investors can also invest in these types of funds to gain confidence while investing.