Investing in Mutual Funds - Returns & Risks

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Post on 18-Jan-2017




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Slide 1MUTUAL FUNDS KNOWLEDGE SERIESReturns, Risks & Investing in Mutual FundsTable of ContentsReturns in Mutual FundsReturns are the key indicators of the investment performance in mutual fund and are calculated from the historical NAVs. By comparing returns, the investor will get the fair idea about the fund whether it is suitable for achieving his financial goalsTypes of Returns in Mutual FundsCalculating Returns in Mutual FundsRisk in Mutual FundsInvestments in shares, debentures and deposits are not always risk-free. A very important risk involved in mutual fund investments is the market risk. When the market is in doldrums, most of the equity funds will also experience a downturnSome of the other risks include Industry risk, Credit Risk, Inflation risk, Interest rate risk, Fund Manager Risk, Country risk, Currency Risk, etcMeasuring Mutual Fund RiskWays to invest in/redeem from Mutual FundsParameters for Selecting Mutual FundsRiskometer in Mutual FundsThe SEBI introduced a pictorial meter named "Riskometer" and this meter would appropriately depict the level of risk in any specific scheme. The mutual funds would need to mention the risk level of a scheme through that RiskometerFor any further queries, visit