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Understanding Risk and Return in Mutual Funds

Every investment comes with two sides u2014 risk and return, and mutual funds are no exception. Understanding this balance is essential for making smart investment decisions that match your financial goals and comfort level.<br><br>Risk in mutual funds refers to the possibility of fluctuations in the value of your investment due to market movements. Equity funds, for example, may offer higher potential returns but also come with higher volatility. On the other hand, debt funds are relatively stable but tend to provide moderate returns.

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Understanding Risk and Return in Mutual Funds

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  1. Understanding Risk and Return in Mutual Funds Risk in mutual funds refers to the possibility of fluctuations in the value of your investment due to market movements. Equity funds, for example, may offer higher potential returns but also come with higher volatility. On the other hand, debt funds are relatively stable but tend to provide moderate returns. Hybrid funds strike a balance between the two by combining both equity and debt instruments. https://susampada.in/products/mutual-funds/

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