What Type Of Mutual Fund Is Most Risky?

by | Last updated on January 24, 2024

, , , ,

Stocks / Equity Investments include stocks and stock . These investments are considered the riskiest of the three major asset classes, but they also offer the greatest potential for high returns.

Should I invest in high risk mutual funds?

High risk mutual funds are ideal for investors with long-term investment horizon as higher volatility may hamper short and medium-term returns. So, the best high risk funds in India are certainly suitable for young investors who can afford to be aggressive and have a long-term investment horizon.

What is a high risk mutual fund?

High-risk mutual funds refer to funds that have excellent potential and the ability to provide high returns . ... These high-risk mutual funds typically provide great dividends to an investor. If you are someone who is willing to take a high risk in order to receive good returns, then you can choose such a fund.

Which is the best mutual fund for high return?

Fund Name Category 1Y Returns Mirae Asset Emerging Bluechip Fund Equity 68.0% Axis Midcap Fund Equity 62.9% Parag Parikh Flexi Cap Fund Equity 57.6% BNP Paribas India Consumption Fund Equity 54.3%

What is the risk level of mutual funds?

The level of risk in a depends on what it invests in. Stocks are generally riskier than bonds , so an equity fund tends to be riskier than a fixed income fund. Plus some specialty mutual funds focus on certain kinds of investments, such as emerging markets, to try to earn a higher return.

Can I lose all my money in mutual fund?

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.

What are the top 5 mutual funds?

  • Axis Bluechip Fund.
  • Mirae Asset Large Cap Fund.
  • Parag Parikh Long Term Equity Fund.
  • Kotak Standard Multicap Fund.
  • Axis Midcap Fund.
  • DSP Midcap Fund.
  • Axis Small Cap Fund.
  • SBI Small Cap Fund.

Which mutual fund is best for 2020?

  • ICICI Prudential Focused Bluechip Equity Fund.
  • Aditya Birla Sun Life Small & Midcap Fund.
  • Tata Equity PE Fund.
  • HDFC Monthly Income Plan – MTP.
  • L&T Tax Advantage Fund.
  • SBI Nifty Index Fund.
  • Kotak Corporate Bond Fund.
  • Canara Robeco Gilt PGS.

What is the safest asset to own?

Common safe assets include cash, Treasuries, money market funds, and gold. The safest assets are known as risk-free assets, such as sovereign debt instruments issued by governments of developed countries .

What is Blue Chip Fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation . These are well-established companies with a track record of performance over some time. ... Blue Chip is commonly used as a synonym for large cap funds.

Is Axis Bluechip fund good?

Last 1Y 52.5% 6 Month CAGR 21%

What is the fastest growing mutual fund?

PPFAS MF is the fastest growing major mutual fund house in India. Among the top 30 AMCs, PPFAS registered the highest AUM growth at 178% in FY 2021. Its AUM went up from Rs 3,138 crore to Rs 8,720 crore during the financial year. ... Its AUM went up from Rs 43,200 crore to Rs 69,598 crore.

What are the 3 types of mutual funds?

  • Equity or growth schemes. These are one of the most popular mutual fund schemes. ...
  • Money market funds or liquid funds: ...
  • Fixed income or debt mutual funds: ...
  • Balanced funds: ...
  • Hybrid / Monthly Income Plans (MIP): ...
  • Gilt funds:

What happens to mutual funds if the market crashes?

Your mutual fund account is not guaranteed against a loss caused by a market decline. A federal agency, the Securities Investor Protection Corporation, only insures against loss from fraud or misappropriation , and only up to $500,000 per account.

Are mutual funds safer than stocks?

Risk of loss: Mutual funds tend to be a safer investment than individual stocks , but you can still lose money. If the value of the investments held in a mutual fund declines, the value of the fund will also decline. If you then sell your shares at a lower price than the price you bought them for, you will lose money.

Why mutual funds are bad?

However, mutual funds are considered a bad investment when investors consider certain negative factors to be important , such as high expense ratios charged by the fund, various hidden front-end, and back-end load charges, lack of control over investment decisions, and diluted returns.

Ahmed Ali
Author
Ahmed Ali
Ahmed Ali is a financial analyst with over 15 years of experience in the finance industry. He has worked for major banks and investment firms, and has a wealth of knowledge on investing, real estate, and tax planning. Ahmed is also an advocate for financial literacy and education.