How does market volatility impact mutual funds?
- Market volatility refers to sudden ups and downs in the financial markets. Mutual funds, especially equity funds, are directly affected by this.
- When markets rise, your fund’s value (NAV) may go up, and when markets fall, the NAV can drop.
- However, short-term volatility is normal and doesn’t always reflect the long-term potential of your investment.
- Staying invested with a long-term view helps ride out the market’s ups and downs.
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