Is Mutual fund risky?
Yes, mutual fund can be risky if you chose a risky mutual fund scheme.
There are various types of mutual funds – equity, debt, hybrid.
The Equity oriented schemes carry higher risk, debt schemes carry lower risk (and provide lower returns) and hybrid schemes try to balance the risk.
Within Equity schemes, the focused funds, sector funds, thematic funds carry the highest risk. Even some small caps and mid-caps schemes also carry higher risks.
As an investor, you need to find out your risk appetite (a mutual fund distributor can help you with risk profiling). Based on this and the duration of investment goals, you can choose (or a mutual fund distributor can help you chose) and you also need to diversify your investments into various scheme categories to have a balance between risk and returns.
You can use services of a Mutual Fund distributor to help you with your investments and portfolio building as he can provide you research based recommendations and also can track your investments and provide advice in future for any changes in portfolio.
Contract tradeyogablog@gmail.com for any advice. We are AMFI registered Mutual Fund Distributors.