It’s very unlikely that you’ll lose your entire investment in a mutual fund.
However, like all market-linked investments, mutual funds do carry some level of risk.
Here’s what you need to know:
Mutual funds are diversified, meaning your money is spread across many stocks or bonds.
This helps reduce the impact if one investment doesn’t do well.
Equity mutual funds (which invest in stocks) can go up and down with the market. In extreme cases, you might face losses—but losing everything is extremely rare.
Debt mutual funds (which invest in safer instruments like government or corporate bonds) are usually more stable, but they too can face small risks.
Regulations by SEBI (India’s market regulator) ensure that mutual funds follow strict rules to protect investors.
In short: Yes, there is some risk but mutual funds are designed to manage it. Choosing the right fund based on your goals and risk appetite can help you invest with confidence.
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