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INTERVIEW QUESTIONS INVESTMENT MUTUAL FUNDS DETAILS
Question :
Are investments in mutual fund units risk-free or safe?
Category Mutual Funds Interview Questions
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Added on 7/18/2016
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Answers:

Source: CoolInterview.com

This depends on the underlying instrument that a mutual fund invests in, based on its investment objectives. Mutual funds that invest in stock market-related instruments cannot be termed risk-free or safe as investment in shares are inherently risky by nature, whereas funds that invest in fixed-income instruments are relatively safe and those that invest only in government securities are the safest.
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