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why mutual funds are always subject to market risk please read the offer document before investing.
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Answer Posted / rajesh shinde
Mutual fund money invested by fund manager in fix return
instruments like government bonds, commercial papers as well
as some part of money invested in fluctuating rate of return
instruments which is negative or positive, eg: equity,
derivatives, debt fund. So because of no guaranty on return
of share market instruments, risk always associated with it,
that's the reason mutual funds are always subject to market
risk.
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