Know The Risks To Your Debt Funds

Is it safe? That’s what people want to know when they talk about default risk in investments. Let us state one basic aspect for the sake of clarity. A mutual fund is a vehicle for investors to participate in the market, for example, equity market or bond market or gold. It may seem that you are investing in a mutual fund, but actually you are investing through the mutual fund in these instruments. The difference between “in” and “through” is that when you are buying, say, an equity stock or bond, you are investing in it. When you are participating in an investment vehicle, for instance, a mutual fund or a portfolio management service (PMS), you are investing through that vehicle. The relevance of the difference is that when you are thinking about the safety of your money, it is related to the structure of the vehicle, i.e., the mutual fund, and how strongly...